Bursa Malaysia poised to test the RM7.90 resistance level. With momentum indicator RSI pointing upwards coupled with higher trading volume, we believe it will experience a technical breakout soon. If this happens, it will move towards the short-term target prices of RM8.20 and RM8.90. The downside support is anticipated at RM7.20, whereby traders may exit on a breach to avoid the risk of a further correction

Trading Call: Buy on breakout RM7.90

Target: RM8.20, RM8.90 (time frame: 2-4 weeks)

Exit: RM7.20

Source: AmInvest Research - 22 May 2020