Guan Chong has retraced to test its previous low with the immediate resistance level of RM2.85. With higher trading volume recorded in the latest session, it is probable that it will break RM2.85 and move towards the target prices of RM3.03 and RM3.10. The immediate support is anticipated at RM2.70, whereby traders may exit on a breach to avoid the risk of a further correction. Trading Call: Buy upon breakout above RM2.85

Target: RM3.03, RM3.10 (time frame: 3-6 weeks) Exit: RM2.70

Source: AmInvest Research - 9 Jan 2020