ELK-Desa Resources retraced towards 20-day moving average in recent sessions. With indicator RSI above 50%, there is a possibility it will break above the resistance price of RM1.65 and moves towards target price of RM1.75. If it fails to cross the RM1.65, it will continue to move sideways and consolidates. Support price is anticipated at RM1.55 whereby traders may exit on a breach to avoid the risk of a further correction.

Trading Call: Buy upon breakout above RM1.65

Target: RM1.75 (time frame: 3-6 weeks)

Exit: RM1.55

Source: AmInvest Research - 7 Aug 2019