Daily technical highlights – (PBBANK,SALUTE)

PBBANK (Not Rated)

• PBBANK rose 4.0 sen (+0.2%) to close at RM20.08 yesterday.
• Chart-wise, the share has been trading below all the key SMAs and consolidating at the support level. Recently, we spotted a positive divergence between the share price and the upward sloping MACD indicator which might indicate an early sign of bottoming. However, further confirmation is required to confirm the trend reversal.
• Should selling momentum persists, we expect the share to test the support level at RM19.50 (S1) and RM19.00 (S2)
• On the other hand, resistance levels can be found at RM21.60 (R1) and RM22.80 (R2).

SALUTE (Not Rated)

• Yesterday, SALUTE gained 4.5 sen (+6.87%) to close at RM0.700.
• Chart-wise, the share has broken above the “Flag” continuation chart pattern yesterday coupled with higher-than-average trading volume.
• Besides, the bullish MACD indicator further support the bullish sentiment, hence we believe that the share could trend higher.
• Should the buying interest persist, the key resistance levels to look out for are RM0.850 (R1) and RM0.800 (R2).
• Conversely, downside supports can be identified at RM0.570 (S1) and RM0.500 (S2)

Source: Kenanga Research - 1 Oct 2019