Guan Chong broke above the RM2.76 level and the 21-day SMA line in its latest session. With a moderate RSI level, it may trend higher above this point with a target price of RM3.05. Meanwhile, it may continue trending sideways if it falls back below the RM2.76 mark in the near term. In this case, support is anticipated at RM2.60, whereby traders may exit on a breach to avoid the risk of a further correction.

Trading Call: Buy on uptrend continuation above RM2.76

Target: RM3.05 (time frame: 3-6 weeks)

Exit: RM2.60

Source: AmInvest Research - 9 Jan 2019