INARI (Trading Buy, TP: RM2.17; SL: RM1.61)

• INARI fell 10.0 sen (-5.26%) to close at RM1.80 yesterday.
• Chart-wise, INARI has experienced a steep sell-down over the past few trading days. However, we believe the sell-down could be overdone due to its sharper-than-expected correction, thus, prompting the possibility of rebound.
• Key momentum indicators such as RSI and stochastic are in oversold conditions and price is hovering around a key Fibonacci retracement level. We also note that oversold conditions on the RSI for INARI seldom occurs, which further strengthens the case of a rebound.
• We look towards RM1.99 (R1) and RM2.20 (R2) as resistances while any further downside bias should see support at RM1.64 (S1) where keen investors may look at to build a position.

DUFU (Not Rated)

• Yesterday, DUFU declined 11.0 sen (-4.47%) to close at RM2.35.
• Technical-wise, DUFU has enjoyed a remarkable rally since mid-July and is currently experiencing a retracement. We believe the retracement is not over yet given fewer exciting signals from key momentum indicators. We also note the possibility of a head and shoulders pattern in the making giving more hints of further downside.
• From here, immediate support levels can be identified at RM2.12 (S1) and RM1.90 (S2) which are both key Fibonacci levels.
• Conversely, should the buying momentum continue we look at RM2.40 (R1) and RM2.60 (R2), close to its 20-day SMA as resistances.

Source: Kenanga Research - 30 Oct 2018