Guan Chong crossed the RM2.35 mark and the 21-day SMA line during its latest session. With a neutral RSI level, a bullish bias may be present above this point with a target price of RM2.49, followed by RM2.65. Meanwhile, it may turn sideways if it falls back below the RM2.35 mark in the near term. In this case, support is anticipated at RM2.18 whereby traders may exit on a breach to avoid the risk of a further correction.

Trading Call: Buy on further rebound above RM2.35

Target: RM2.49, RM2.65 (time frame: 3-6 weeks)

Exit: RM2.18

Source: AmInvest Research - 2 Nov 2018