Daily technical highlights – (CARIMIN, PENTA)

CARIMIN (Not Rated)

• CARIMIN rose 11.0 sen (+9.09%) to end at RM1.32, yesterday.
• Chart-wise, the share has been on a rally since punching above all its key SMAs in Aug 2019.
• Yesterday’s long bullish candlestick broke above its previous swing high of RM1.24, indicating a breakout on strong buying momentum.
• Should buying momentum persist, expect the share to trend higher toward RM1.41 (R1) and RM1.47 (R2)
• On the other hand, support levels can be found at RM1.24 (S1) and RM1.13 (S2).

PENTA (Not Rated)

• PENTA gained 17.0 sen (+3.76%) yesterday to close at RM4.69.
• The share has rallied since bouncing off its 20-day SMA in Sep 2019. However, given the heavily overbought signals from RSI, we believe the rally could be overextended and there should be a consolidation phase in the near-term.
• We reference a similar occurrence in Jul/Aug 2019 (a period where RSI was heavily overbought) where the share experienced a consolidation phase after a similar 2-month rally. As such we believe the share is likely to trade within the range of RM4.40-RM4.90 in the near-term.
• Support levels can be found at RM4.59 (S1) and RM4.39 (S2).
• Conversely, the resistance level can be identified at RM4.92 (R1) and RM5.25 (R2)

Source: Kenanga Research - 15 Oct 2019