Luxchem Corporation printed a long white candle to test the resistance of RM0.54 in its latest session. With a rising RSI level, there is a possibility it will break above the resistance level and move towards target prices of RM0.565 and RM0.61. If it fails to cross above RM0.54, expect a sideway consolidation movement. Support is anticipated at RM0.50, whereby traders may exit on a breach to avoid the risk of a further correction.

Trading Call: Buy upon breakout above RM0.54

Target: RM0.565, RM0.61 (time frame: 3-6 weeks)

Exit: RM0.50

Source: AmInvest Research - 31 Jul 2019