VSTECS retraced lower during its recent sessions with an immediate resistance level at RM1.12. Observe that the RSI is in the oversold region with high trading volume recorded in recent sessions. We foresee that there could be a technical rebound above the resistance level in coming sessions. If this happens, the short-term target prices will be RM1.20 and RM1.26. In this case, the downside support is anticipated at RM1.35, whereby traders may exit on a breach to avoid the risk of a further correction

Trading Call: Buy on breakout RM1.12

Target: RM1.20, RM1.26 (time frame: 3-6 weeks)

Exit: RM1.03

Source: AmInvest Research - 10 Mar 2020