Malayan Flour Mills may soon retrace its path to test the RM0.53 level. If this happens, the RSI indicator may drop below 30% and the stock could become oversold. This indicates that there is a possibility it will experience a technical rebound towards the short-term target prices of RM0.56 and RM0.58. The downside support is anticipated at RM0.49, whereby traders may exit on a breach to avoid the risk of a further correction

Trading Call: Buy on pullback near RM0.53

Target: RM0.56, RM0.58 (time frame: 3-6 weeks)

Exit: RM0.49

Source: AmInvest Research - 9 Mar 2020