PWROOT (Not Rated)

• PWROOT gained 11.0 sen (6.9%) to close at RM1.70, with the support of 2.5m shares traded, quintuple of 20-day average volume of 0.5m.
• Yesterday’s “White Closing Marubozu” candlestick indicates that bull dominated most part of the day.
• Overall technical picture is turning more positive with 20-day SMA crossing above 50-day SMA. Meanwhile, momentum indicators reverted into an uptrend, suggesting that PWROOT is gaining momentum as it rebounds.
• Expect the rebound to continue towards RM1.95 (R2) with an intermediate resistance near RM1.76 (R1).
• Conversely, look out for support at RM1.53 (S1), which a break below is deemed negative, and could trigger a capitulation towards 1.15 (S2) further down.

GFM (Not Rated)

• GFM gained 3.0 sen (5.56%) yesterday, closing at RM0.570, resulting in a long white candlestick formed.
• Yesterday’s move saw the share price breaking out from the prior RM0.550 resistance level decisively, hovering above the key moving averages.
• Technical outlook seemingly improving backed by momentum indicators that are mostly supportive for the next advancement towards RM0.602 (R1) and RM 0.643 (R2).
• Conversely, support levels can be identified at RM0.510 (S1) and RM0.50 (S2) further down.

Source: Kenanga Research - 17 May 2018