TAWIN (Take Profit @ RM1.14). In our 16th March report, we recommended a technical “Trading Buy” on TAWIN (RM0.625). The share price had since performed spectacularly, resulting in a subsequent upwards revision to our target price and stop-loss (report dated 8-Aug-2017). Nevertheless, the previously bullish technical picture now appears to have turned, particularly with the decisive break below the crucial RM1.22 support late last week. With key SMAs in a “Death Crossover” and MACD losing momentum, we opt to take profit on the counter for an impressive 82.4% gain. We will, however, revisit the counter should the technical picture turn more favourable in due course. From here, resistances can be found at RM1.22 (R1) and RM 1.35 (R2) while supports can be identified as psychological levels at RM1.00 (S1) and RM0.87 (S2).

PENTA (Not Rated). PENTA gained 18.0 sen (7.0%) yesterday to close at RM2.74 backed by strong trading volume with 17.1m shares exchanging hands – tripled its 20 day-average. Chart-wise, PENTA has been on a healthy uptrend since January, having sustained a steady climb from a low of RM0.63 to as high as RM2.43 earlier this month before encountering a healthy pullback. However, the share price is now poised to resume its prior bullish trend supported by yesterday’s bullish move in which it took out the key resistance level of RM2.61. Likewise, given the share price now above all key SMAs, and with a bullish MACD above Signal line, we believe the balance of evidence favours the upside. From here, PENTA could look to gearing upwards for further gains towards RM3.00 (R1) psychological resistance level and possibly RM3.37 (R2). Meanwhile, key support thresholds are RM2.24 (S1) and RM2.14 (S2) further down.

Source: Kenanga Research - 21 Dec 2017