Thong Guan Industries surged past the resistance price of RM2.70 in its latest session with higher trading volume. With the momentum indicator RSI above 60%, the short-term momentum could reach a target price of RM3.00, followed by RM3.10. If it dips below RM2.70, it will move sideways and consolidate. Support price is anticipated at RM2.60 whereby traders may exit on a breach to avoid the risk of a further correction

Trading Call: Buy on trend continuation above RM2.70

Target: RM3.00, RM3.10 (time frame: 2-4 weeks)

Exit: RM2.60

Source: AmInvest Research - 6 May 2019