Luxchem Corporation may soon test the RM0.635 level after forming a piercing line candle pattern. With a neutral RSI level, it may move higher above this mark with a target price of RM0.68, followed by RM0.705. Meanwhile, it may drift sideways if it fails to breach the RM0.635 mark in the near term. In this case, support is anticipated at RM0.59, whereby traders may exit on a breach to avoid the risk of a further correction.

Trading Call: Buy on favourable consolidation above RM0.635

Target: RM0.68, RM0.705 (time frame: 3-6 weeks)

Exit: RM0.59

Source: AmInvest Research - 5 Oct 2018