Hengyuan Refining Company may moves higher to test the immeidiate resistance level at RM3.20. With momentum indicator RSI pointing above 50%, coupled with 21-day moving average pointing upwards, it may break out from resistance level soon. If this happens, it will climb towards the short-term target prices of RM3.35 and RM3.50. In this case, the downside support is anticipated at RM2.90, whereby traders may exit on a breach to avoid the risk of a further correction

Trading Call: Buy on breakout RM3.20

Target: RM3.35, RM3.50 (time frame: 2-4 weeks)

Exit: RM2.90

Source: AmInvest Research - 4 May 2020