PIE (Not Rated)

• PIE gained 6.0 sen (3.53%) yesterday to close at RM1.44, backed by exceptional volume to indicate strong buying interest.
• Chart-wise, PIE has been moving in a downtrend since late last year. However, it appears to have bottomed-out last month after multiple retests of its RM1.23 support, while also showing positive signs for a sustainable rebound recovery in its momentum indicators.
• More notably, yesterday’s close has brought the share to cross above its 100-day SMA, where in the past, this has shown to be a good early indication of an upcoming rally.
• From here downside is fairly limited, with the aforementioned support of RM1.23 (S1) proving to be quite resilient.
• Conversely, a rally would be met with resistances at RM1.53 (R1) and RM1.72 (R2).

INARI (Not Rated)

• INARI gained 8.0 sen yesterday (3.52%) to close at RM2.35.
• Based on the chart, the formation of a “Double-Bottom” in April to May saw the share rally up as high as RM2.38 in early June. The upward momentum, however, tapered off afterwards.
• Nevertheless, we still think that the share may continue rallying higher towards its high at RM2.55 (R1) as the long white candlestick formed yesterday is supported by above-average trading volume.
• Conversely, any weakness towards its support RM2.22 (S1) may provide an attractive entry point for investors. A break below RM2.00 (S2), however, is deemed highly negative.

Source: Kenanga Research - 11 Jul 2018