INARI (Not Rated)

• INARI gained 6.0 sen (+3.75%) to close at RM1.66 yesterday.
• Chart-wise, the share has been consolidating near its key SMAs. Yesterday’s candlestick close marked a break above all key SMAs for INARI, which we believe was fuelled by easing U.S.-China trade tensions.
• Despite breaking above all key SMAs, yesterday’s bearish pin bar candlestick formation suggests strong selling pressure. As such, we believe the share is likely to consolidate in the near-term.
• Look out for immediate resistance at RM1.76 (R1), where a break above would see INARI head higher towards RM1.86 (R2).
• On the other hand, downside supports can be identified at RM1.60 (S1) and RM1.42 (S2).

PENTA (Not Rated)

• Yesterday, PENTA rose 11.0 sen (+3.82%) to end at RM2.99.
• The share has been on a rally since breaking above its key SMAs in Feb-2019. However, following yesterday’s doji with long upper tail candlestick formation at the top of the rally, it indicates selling pressure.
• Therefore, we opine a period of consolidation or retracement could follow suit, as evidenced by historical trends.
• Should selling pressure continue, support levels can be found at RM2.70 (S1), first, and RM2.48 (S2).
• Conversely, resistance levels can be identified at RM3.05 (R1) and RM3.40 (R2)

Source: Kenanga Research - 2 Jul 2019