Sime Darby has rebounded from its low with a hammer formation. With a rising RSI, it may soon test the immediate resistance price of RM2.12. If this happens, the short-term target prices will be RM2.22 and RM2.30. Meanwhile, it may lose its bullish momentum if it fails to break the resistance in the near term. Support is anticipated at RM2.04, whereby traders may exit on a breach to avoid the risk of a further correction.

Trading Call: Buy upon breakout above RM2.12

Target: RM2.22, RM2.30 (time frame: 3-6 weeks)

Exit: RM2.04

Source: AmInvest Research - 28 Aug 2019