Guan Chong has been range-bound during recent sessions. Higher trading volume was recorded in the latest session. With the momentum indicator RSI above 70%, there is a possibility it will break above the resistance price of RM3.50, and move towards the target prices of RM3.23 and RM3.36. The immediate support is anticipated at RM2.77, whereby traders may exit on a breach to avoid the risk of a further consolidation.

Trading Call: Buy upon breakout above RM3.00

Target: RM3.23, RM3.36 (time frame: 3-6 weeks)

Exit: RM2.77

Source: AmInvest Research - 18 Dec 2019