Superlon Holdings rebounded from its low to test the immediate resistance level RM0.72. With the RSI indicator pointing upwards, coupled with higher trading volume, we think that there could be a technical breakout soon. If this happens, expect it to propel towards the short-term target prices of RM0.75 followed by RM0.79. In this case, the downside support is marked at RM0.66, whereby traders may exit on a breach to avoid the risk of a further correction

Trading Call: Buy on breakout RM0.72

Target: RM0.75, RM0.79 (time frame: 2-4 weeks) Exit: RM0.66

Source: AmInvest Research - 10 Jun 2020