Leong Hup International may soon move higher to test the immediate resistance level of RM0.535. With the momentum indicator RSI pointing upwards, we foresee that the momentum may travel towards the short-term target prices of RM0.60 and RM0.67. In this case, the downside support is anticipated at RM0.47, whereby traders may exit on a breach to avoid the risk of a further correction.

Trading Call: Buy on breakout RM0.535
Target: RM0.60, RM0.67 (time frame: 3-6 weeks)
Exit: RM0.47

Source: AmInvest Research - 27 Mar 2020