Gamuda has recouped its early losses and formed a classical hammer pattern, after gapping down in its morning session. With a neutral RSI, coupled with higher trading volume, there is a possibility it will break above the immediate resistance of RM3.18, and move towards a target price of RM3.39 and RM3.60. Downside support is anticipated at RM2.97, whereby traders may exit on a breach to avoid the risk of a further correction.

Trading Call: Buy upon breakout above RM3.18

Target: RM3.39, RM3.60 (time frame: 3-6 weeks)

Exit: RM2.97

Source: AmInvest Research - 15 May 2019