Sime Darby rebounded from the oversold level and may soon test the immediate resistance level of RM1.73. Since the RSI is below 30%, coupled with high trading volume, we foresee that there could be a breakout from the resistance and move towards the short-term target prices of RM1.84 and RM1.96. In this case, the downside support is anticipated at RM1.64, whereby traders may exit on a breach to avoid the risk of a further correction

Trading Call: Buy on breakout RM1.73

Target: RM1.84, RM1.96 (time frame: 3-6 weeks)

Exit: RM1.64

Source: AmInvest Research - 18 Mar 2020