Petronas Chemicals Group has rebounded from its low with a formation of hammer pattern. A bullish bias may be present if it crosses above the RM7.42 resistance. Short-term target prices are RM7.70 and RM7.80. Meanwhile, it may continue moving sideways if it fails to cross the RM7.42 mark in the near term. The immediate support is anticipated at RM7.20, whereby traders may exit on a breach to avoid the risk of a further correction.

Trading Call: Buy upon breakout above RM7.42

Target: RM7.70, RM7.80 (time frame: 3-6 weeks)

Exit: RM7.20

Source: AmInvest Research - 18 Nov 2019