MBM Resources may soon rebound to test the RM2.68 resistance level. Notice that the RSI indicator fell below 30% into the oversold region. Coupled with high trading volume, this indicates that there is a possibility it will experience a technical rebound towards the short-term target prices of RM3.00 and RM3.20. The downside support is anticipated at RM2.52, whereby traders may exit on a breach to avoid the risk of a further correction.

Trading Call: Buy on breakout RM2.68
Target: RM3.00, RM3.20 (time frame: 3-6 weeks)
Exit: RM2.52

Source: AmInvest Research - 27 Mar 2020