REACH (Not Rated)

• REACH gained 4.5 sen (+13.85%) to close at RM0.370 yesterday.
• Technically, the share has been on a rally since late August, after seemingly bottoming out in June.
• Yesterday’s candlestick represented a break and close above its previous swing high of RM0.365. Backed by exceptional trading volume and positive signals from key momentum indicators, this could indicate buying interest and a possible continuation of its August rally.
• We expect REACH to test its resistance of RM0.380 (R1) and RM0.415 (R2) should the first level be taken out.
• Conversely, downside bias should see supports at RM0.350 (S1) and further down at RM0.325 (S2). Keen investors may want to keep an eye on these levels to build a position.

AIRASIA (Not Rated)

• AIRASIA gained 7.0 sen (+2.31%) to close at RM3.10 yesterday on strong trading volume.
• Chart-wise, the share had been on a downtrend recently. However, yesterday’s candlestick resembles a ‘Bullish Harami’ and may signal a potential change in sentiment.
• Moreover, the stochastic indicator is in the oversold zone.
• Should buying interest continue, we may see the share rally towards RM3.35 (R1) with the next resistance level at RM3.60 (R2).
• Conversely, retracement towards RM3.00 (S1) and RM2.90 (S2) would serve as a good entry point for interested investors.

Source: Kenanga Research - 14 Sept 2018