PADINI (Trading Buy, TP: RM5.50, SL: RM4.80)

• PADINI jumped 29.0 sen (5.9%) to close at RM5.19 yesterday, accompanied by exceptionally strong trading volume of 5.5m shares, more than 5-folds its 20-days average.
• Chart-wise, PADINI was suffering from a mild downtrend over the past couple of months. However, the stock’s bullish move this week has confirmed a “Double Bottom” chart pattern, marking a possible reversal at play.
• Likewise, momentum indicators are bullish with MACD-crossover, with the RSI also climbing upwards.
• From here, a breakout of overhead resistance at RM5.50 (R1) will be another positive should it occur, potentially paving way towards RM6.25 (R2).
• Conversely, supports can be identified at RM4.72 (S1) and RM4.25 (S2).

HSSEB (Not Rated)

• Yesterday, HSSEB rallied 7.5 sen (8.8%), closing at RM0.93. This comes after strong consecutive selling pressure for the few days prior.
• Technically, while its underlying trend has inevitably turned south after the tremendous sell-down prior, yesterday’s gain may play as an early signal that the share has found some support. Indicators, such as the RSI and stochastic oscillator, have also crept into oversold territory.
• From here, speculative traders may bet on the share to rebound and fill its gaps upon a sustainable recovery momentum. Look out for key resistances at RM1.30 (R1) and RM1.40 (R2).
• A break below immediate support at RM0.855 (S1) will be highly negative, paving a way for the share to potentially capitulate further down to lower support at RM0.515 (S2).

Source: Kenanga Research - 18 May 2018