BAT (Not Rated)

• BAT gained 1.48 sen (+4.40%) to close at RM35.80.
• Yesterday’s bullish candlestick saw it broke past the 50 and 100-day SMAs above the RM34.50 prior resistance level, possibly indicating a bullish move ahead.
• Moreover, positive momentum is indicated by meaningful upticks in the RSI and stochastic indicators with MACD continuing its uptrend.
• We look towards RM37.50 (R1) and RM41.05 (R2) as resistances. Conversely, immediate support can be identified at resistance-turned-support RM34.50 (S1), and further down at RM31.75 (S2).

TONGHER (Not Rated)

• TONGHER rose 14.0 sen (+3.47%) to close at RM4.18, backed by stronger-than-average trading volume.
• The share is currently in an uptrend since mid-last year, with the share price leading key SMAs upwards in a fanning state.
• Continuation of the bullish outlook is further backed by positive displays from key momentum indicators.
• From here, expect F&N making the next high towards RM4.25 (R1). Should follow-through buying momentum sustain, further gains could then be expected at RM4.60 (R2) next.
• Downside support can be found at the immediate support level at RM4.00 (S1) and RM3.85 (S2) further down.

Source: Kenanga Research - 10 Oct 2018