On Our Technical Watch

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Sophia Griffin
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By Lawrence Yeo / lawrenceyeo@kenanga.com.my; Steven Chan / steven.chan@kenanga.com.my; Muhammad Afif Bin Zulkaplly / muhammad.afif@kenanga.com.my Figure 1: Daily Charting FBMKLCI Basic Data 52-week High 1,796.

1 By Lawrence Yeo / lawrenceyeo@kenanga.com.my; Steven Chan / steven.chan@kenanga.com.my; Muhammad Afif Bin Zulkaplly / muhammad.afif@kenanga.com.my Figure 1: Daily Charting FBMKLCI Basic Data 52-week High 1, (in Million) 52-week Low 1, KLCI Vol Current Level 1, Bursa Vol Intraday High 1, Bursa Val Intraday Low 1, Technical Ratings Resistance 2 1,765 MACD Bearish Resistance 1 1,750 RSI (14) Neutral Current Level 1, Stochastic Neutral Support 1 1,733 Support 2 1,727 Outlook Neutral-Negative The FBMKLCI on a three-day losing streak Performances of Asian markets were subdued following disappointing China economic data, with no exception to our local market with negative sentiment as 588 losers outweighed 300 gainers. The key index, FBMKLCI dropped 3.88pts (0.22%) to close at 1, with GENTING, PETGAS and GENM among the top laggards. Chart-wise, the index opened higher but drifted lower into the red, reflecting investors propensity to take profit whenever the opportunity arises. Indicator-wise, the MACD remains below the Zero-line in a downward trend, and we have yet to see any signs of meaningful recovery in the near term. Yesterday s move further diminished the technical picture with the outlook biased on the downside. Now that the index in the midst of testing the support level of 1,733 (S1), a decisive breakdown could see the index trending lower towards 1,727 (S2). Meanwhile, the resistance levels are 1,750 (R1) and 1,765 (R2). Wall Street drags down by energy stocks after slide in oil prices US market closed lower after General Electric s (GE) share price plunged for a second day and energy stocks took a hit after a drop in oil prices. US crude fell 1.9% to USD55.70 per barrel following International Energy Agency comment that the current rally in oil prices could be short-lived and global demand for oil would be weaker than expected. Likewise, the DJIA was down by 30.23pts (-0.13%) closing at 23, From a charting perspective, the index opened lower and slid sharply only to rebound and pare some of its losses as investors bought on dips. The DJIA s primary uptrend remains intact, although a near-term pullback may be at play. However, we believe a short-term consolidation is healthy and necessary for the index before resuming a move higher later on. Any weakness from here is likely to be short-lived, with investors having shown willingness to buy on dips. Beyond that, we should see the index paving a clear path towards the next resistance at 23,820 (R1), and with a decisive breakout, further up to key psychological level of 24,000 (R2). Conversely, support levels are located at 23,163 (S1) and 22,856 (S2). Daily technical highlights - (AYS, PENTA) AYS (Not Rated). AYS saw its share price climbing 3.5 sen (7.0%) yesterday to finish at the day s high of RM0.535 amid a surge in trading volume to 8.3m shares. From a charting perspective, AYS has been on a long-term uptrend since August last year, having doubled from RM0.32 to as high as RM0.665 in June this year. Although the share price has been consolidating downward these recent 6 months, this long-term uptrend remains largely intact. In fact, yesterday s bullish move signals a departure from the trend-line support. At the same time, the MACD-Signal line and Zero line crossovers yesterday also indicated that momentum has transitioned from bearish to bullish. Hence, we would not discount the possibility of AYS commencing the next leg higher. From here we see the potential for a move towards September s high of RM0.56 (R1) before a retest of the R0.60 (R2) resistance further up. Any weakness towards the RM0.50 (S1) support may be viewed as a buying opportunity, although a break below would be highly negative with the next support level present at RM0.44 (S2). PENTA (Not Rated). Yesterday, PENTA saw an impressive gain of 39.0 sen (8%), closing at new high of RM5.25. This was accompanied by high trading volume, with 3.8m shares exchanging hands more than 6-fold its 20-day average. More importantly, yesterday s move marks as a breakout above its previous high of RM5.08, as well as a 3-month consolidation period. Chart-wise, PENTA has been undergoing a strong uptrend since early-2016, and yesterday s breakout could possibly signal a continuation of this uptrend. Likewise, positive upticks from key indicators could also be suggestive of a move higher. From here, sustained momentum should see the counter clearing a path towards the overhead resistances at key psychological level of RM6.00 (R1) and RM6.56 (R2). Conversely, downside supports can be identified at RM4.71 (S1) and RM4.47 (S2). PP7004/02/2013(031762) Page 1 of 5

Figure 2: Daily Charting Dow Jones Industrial Average Figure 3: Daily Charting AYS Ventures Berhad (Not Rated) About the stock: Shariah Compliant : Yes Name : AYS Ventures Berhad Bursa Code : AYS CAT

2 Figure 2: Daily Charting Dow Jones Industrial Average Figure 3: Daily Charting AYS Ventures Berhad (Not Rated) About the stock: Shariah Compliant : Yes Name : AYS Ventures Berhad Bursa Code : AYS CAT Code : 5021 Market Cap : Week High/Low : 0.67/0.3 3-m Avg. Daily Vol. : 1,492, Free Float (%) : 28.25% Beta vs. KLCI : 0.7 Key Support & Resistance Level Resistance : RM0.56 (R1) RM0.60 (R2) Support : RM0.50 (S1) RM0.44 (S2) Outlook : Bullish What does the indicator says MACD : Bullish RSI : Bullish Stochastic : Overbought Trend : Bullish What should you do Current Share : RM0.535 Technical Target : - Technical Cut-loss : - Fundamental Call Kenanga : - Consensus : - PP7004/02/2013(031762) Page 2 of 5

Figure 4: Daily Charting Pentamaster Corporation Berhad (Not Rated) About the stock: Shariah Compliant : Yes Name Pentamaster : Corporation Berhad Bursa Code : PENTA CAT Code : 7160 Market Cap : 769.

3 Figure 4: Daily Charting Pentamaster Corporation Berhad (Not Rated) About the stock: Shariah Compliant : Yes Name Pentamaster : Corporation Berhad Bursa Code : PENTA CAT Code : 7160 Market Cap : Week High/Low : 5.26/ m Avg. Daily Vol. : 687, Free Float (%) : 68.22% Beta vs. KLCI : 1.4 Key Support & Resistance Level Resistance : RM6.00 (R1) RM6.56 (R2) Support : RM4.71 (S1) RM4.47 (S2) Outlook : Bullish What does the indicator says MACD : Neutral RSI : Bullish Stochastic : Overbought Trend : Bullish What should you do Current Share : RM5.25 Technical Target : - Technical Cut-loss : - Fundamental Call Kenanga : - Consensus : - This section is intentionally left blank. PP7004/02/2013(031762) Page 3 of 5

4 Unrealised Positions (Nov 2017) No CATS Code Stock Name Issued Date (ID) Upside Reward/ Dividend Gain/ Gain/ Target Stop- Downside Last Potential Risk Ratio Received Loss Risk Loss (incl. Loss since ID Div.) RM RM (%) (%) (x) RM RM RM (%) Rating Comment/ Action TA WIN HOLDINGS BHD 16-Mar % 76.00% % BUY Upgraded TP/SL (8-Aug) TEX CYCLE TECHNOLOGY 21-Apr % 35.77% % BUY PERAK TRANSIT BHD 16-May % % % BUY SCIENTEX BHD 6-Sep % -5.27% % BUY PETRON MALAYSIA REFINING & M 19-Sep % -4.66% % BUY PANTECH GROUP HOLDINGS BHD 28-Sep % -3.73% % BUY UCHI TECHNOLOGIES BHD 4-Oct % -8.06% % BUY VITROX CORP BHD 13-Oct % % % BUY HENGYUAN REFINING CO BHD 7-Nov % % % BUY AEMULUS HOLDINGS BHD 10-Nov % % % BUY Simple Average 36.52% 4.60% % *Tracker does not include Non-Rated positions Realised Positions (Nov 2017) CATS No Stock Name Code Issued Date Buy Intraday price since Buy Date change since Buy Date (%) Sell Date Sell Dividend Received since ID Gain/ Loss (incl. Div.) Gain/ Loss Rating Comment/ Action (H) (L) (H) (L) RM RM RM (%) Simple Average 0.00% 0.00% 0.00% PP7004/02/2013(031762) Page 4 of 5

5 Basic Technical Terms: Reversal Candlesticks Patterns Description Doji Dragonfly Doji (Bullish) Gravestone Doji (Bearish) Engulfing Pattern Hammer (Bullish) Shooting Star (Bearish) Inverted Hammer (Bullish) Hanging Man (Bearish) Harami Harami Cross Dojis form when a security's open and close are virtually equal. The length of the upper and lower shadows can vary, and the resulting candlestick looks like, either, a cross, inverted cross, or plus sign. Doji convey a sense of indecision or tug-of-war between buyers and sellers. A reversal pattern that can be bearish or bullish, depending upon whether it appears at the end of an uptrend (bearish engulfing pattern) or a downtrend (bullish engulfing pattern). The first day is characterized by a small body, followed by a day whose body completely engulfs the previous day's price action. Hammer candlesticks form when a security moves significantly lower after the open, but rallies to close well above the intraday low. This appears in a downtrend. In contrast, the Shooting Star pattern appears in an uptrend. It opens higher, trades much higher, then closes near its open. It looks just like the Inverted Hammer except that it is bearish. The Inverted Hammer is a single-day bullish reversal pattern. In a downtrend, the open is lower, then it trades higher, but closes near its open price, therefore looking like an inverted lollipop. Hanging Man candlesticks form when a security moves significantly lower after the open, but rallies to close well above the intraday low. The Harami is a two-day pattern that can be bullish or bearish. It has a small body day completely contained within the range of the previous body, and is the opposite colour. The Harami Cross is similar to the Harami. The difference is that the last day is a Doji. Marubozu A Marubozu candlestick has no shadow extending from the body at either the open, the close or at both. Morning Doji Star (Bullish) Evening Doji Star (Bearish) Spinning Top A Morning Doji Star (Evening Doji Star) is a three-day candlestick bullish (bearish) reversal pattern - a long-bodied black (white) candle extending the current downtrend, a short middle candle that gapped down (up) on the open, and a long-bodied white candle that gapped up (down) on the open and closed above (below) the midpoint of the body of the first day. Spinning Tops are candlestick lines that have small bodies with upper and lower shadows that exceed the length of the body. They are similar to the Doji candlesticks, and signal indecision. Source: Various Common Chart Patterns Reversal Patterns Inverted Head & Shoulders (Bullish) Head & Shoulders (Bearish) Wedge Reversal (Bullish/ Bearish) Double Top (Bearish) Double Bottom (Bullish) Continuation Patterns Symmetrical Triangle (Bullish/ Bearish) Ascending Triangle (Bullish) Channels (Bullish/ Bearish) Flags (Bullish/ Bearish) Pennant (Bullish/ Bearish) Source: Various This document has been prepared for general circulation based on information obtained from sources believed to be reliable but we do not make any representations as to its accuracy or completeness. Any recommendation contained in this document does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may read this document. This document is for the information of addressees only and is not to be taken in substitution for the exercise of judgement by addressees. Kenanga Investment Bank Berhad accepts no liability whatsoever for any direct or consequential loss arising from any use of this document or any solicitations of an offer to buy or sell any securities. Kenanga Investment Bank Berhad and its associates, their directors, and/or employees may have positions in, and may effect transactions in securities mentioned herein from time to time in the open market or otherwise, and may receive brokerage fees or act as principal or agent in dealings with respect to these companies. Published and printed by: KENANGA INVESTMENT BANK BERHAD (15678-H) Level 12, Kenanga Tower, 237, Jalan Tun Razak, Kuala Lumpur, Malaysia Telephone: (603) Website: research@kenanga.com.my Chan Ken Yew Head of Research PP7004/02/2013(031762) Page 5 of 5

On Our Technical Watch

On Our Technical Watch By Lawrence Yeo / lawrenceyeo@kenanga.com.my; Steven Chan / steven.chan@kenanga.com.my; Muhammad Afif Bin Zulkaplly / muhammad.afif@kenanga.com.my Figure 1: Daily Charting FBMKLCI Basic Data 52-week High