Favelle Favco retreated slightly after failing to break above the resistance price of RM2.77. With an RSI level above 50%, its uptrend momentum may resume if it breaks above the resistance price of RM2.77 in upcoming sessions. If this happens, its short term target price will be RM2.92 followed by RM3.03. Support price is anticipated at RM2.61, whereby traders may exit on a breach to avoid the risk of a further correction.

Trading Call: Buy upon breakout above RM2.77

Target: RM2.92, RM3.03 (time frame: 3-6 weeks)

Exit: RM2.61

Source: AmInvest Research - 6 May 2019