DIALOG (Not Rated)

• DIALOG rose 2.0 sen (+0.67%) to close at RM3.02.
• Chart-wise, the share failed to close above its 50-day SMA. We note that the share is currently trading below its 50 and 100- day SMAs, which have proven to be key levels.
• Shorter-term SMAs are also trading below longer-term SMAs which indicate that the downtrend is still intact. Coupled with lacklustre key momentum indicators, we believe that there may be a further downside.
• Immediate support levels can be identified at RM2.70 (S1) and RM2.55 (S2). Conversely, resistance levels can be found at RM3.12 (R1) and RM3.24 (R2).

INARI (Not Rated)

• INARI gained 4.0 sen (+2.67%) on Monday to close at RM1.54.
• Chart-wise, the share has been on a downtrend from October 2018, hitting a low of RM1.23 in early January 2019 before rebounding over the past 3 weeks.
• Overall technical outlook appears bullish as it has seemingly broken out from the downtrend while key momentum indicators are all positive.
• Expect INARI to test its immediate resistance at RM1.60 (R1) where a break above will see next overhead resistance at RM1.90 (R2).
• Conversely, downside support can be found at RM1.35 (S1) and RM1.20 (S2).

Source: Kenanga Research - 7 Feb 2019