SALUTE (Not Rated)

• SALUTE fell 1.5 sen (-2.40%) to close at RM0.610 yesterday.
• Chart-wise, the share has been on a rally since breaking above its 100-day SMA in early-July 2019. However, as the share failed to break above RM0.655, we believe that the rally could be on hold and that a consolidation phase should take place.
• Lacklustre signals from key momentum indicators appear in favour of our view as well.
• Support levels can be identified at RM0.570 (S1) and RM0.545 (S2). Conversely, resistance levels can be found at RM0.655 (R1) and RM0.710 (R2).

BAT (Not Rated)

• BAT dropped 64.0 sen (-3.36%) to end at RM18.40 yesterday.
• Chart-wise, the share has been dropping since April-2019 to historical low coupled with increasing trading volume.
• Besides, bearish MACD indicator further support the bearishness of the stock and we see no sign of bottoming, hence we expect the share to continue its downward movement.
• Should selling momentum persist, support levels can be seen at RM17.00 (S1) and RM16.00 (S2).
• Conversely, key resistance levels can be seen at RM20.00 (R1) and RM22.00 (R2).

Source: Kenanga Research - 6 Sept 2019