KESM Industries surged past the resistance price of RM7.75 in its latest session with higher trading volume. With the momentum indicator RSI above 60%, the short-term momentum could reach a target price of RM8.35, followed by RM8.70. If it dips below RM7.75, it will move sideways and consolidate. Support is anticipated at RM7.40 whereby traders may exit on a breach to avoid the risk of a further correction.

Trading Call: Buy on continuation above RM7.75

Target: RM8.35, RM8.70 (time frame: 3-6 weeks)

Exit: RM7.40

Source: AmInvest Research - 22 Oct 2019