SCOMNET (Not Rated)

• SCOMNET gained 15.0sen (+42.9%) to close at RM0.500 yesterday.
• Chart-wise, the stock has been on a downtrend since early January this year.
• Yesterday, the stock closed higher with the formation of a “Marubozu” candlestick. Coupled with an uptick in key technical indicator backed by above average trading volume, we expect the buying momentum to persist.
• From here on, overhead resistance can be seen at RM0.540 (R1) and RM0.600 (R2).
• Conversely, downside supports can be identified at RM0.420 (S1) and RM0.340 (S2).

PENTA (Not Rated)

• PENTA gained 35.0 sen (+14.1%) to close at RM2.83 yesterday.
• Chart-wise, the stock has been on a downtrend since early January this year.
• Yesterday’s bullish candlestick continued to trade below all key-SMAs, indicating strong selling pressure. However, we believe the stock is poised for a rebound as its RSI is showing signs of recovery, while backed by a potential MACD crossover.
• Should buying momentum persist, overhead resistance is at RM3.10 (R1) and RM3.45 (R2).
• Conversely, support levels can be identified at RM2.70 (S1) and RM2.40 (S2).

Source: Kenanga Research - 25 Mar 2020