REDtone International may soon test the RM0.395 resistance level. With a healthy RSI level, a bullish bias may be present above this mark with a target price of RM0.44 followed by RM0.48. Meanwhile, it may continue moving sideways if it fails to cross the RM0.395 mark in the near term. In this case, the immediate support is anticipated at RM0.355, whereby traders may exit on a breach to avoid the risk of a further correction.

Trading Call: Buy upon breakout above RM0.395

Target: RM0.44, RM0.48 (time frame: 3-6 weeks)

Exit: RM0.355

Source: AmInvest Research - 27 Aug 2019