Favelle Favco was testing the RM2.78 level in its latest session. With a rising RSI level above 60%, it may trend higher above this point with a target price of RM2.88, followed by RM2.98. Meanwhile, it may continue trending sideways if it fails to cross the RM2.78 mark in the near term. In this case, support is anticipated at RM2.68, whereby traders may exit on a breach to avoid the risk of a further correction.

Trading Call: Buy upon breakout above RM2.78

Target: RM2.88, RM2.98 (time frame: 3-6 weeks)

Exit: RM2.68

Source: AmInvest Research - 22 Aug 2019