Malayan Flour Mills retraced lower for consolidation with an immediate resistance of RM0.395. Since the RSI is oversold, coupled with higher trading volume recorded recently, we foresee that there could be a technical rebound towards the short-term target prices of RM0.44 and RM0.48. In this case, the downside support is anticipated at RM0.35, whereby traders may exit on a breach to avoid the risk of a further correction.

Trading Call: Buy on breakout RM0.395

Target: RM0.44, RM0.48 (time frame: 3-6 weeks)

Exit: RM0.35

Source: AmInvest Research - 20 Mar 2020