Formosa Prosonic Industries jumped higher to test the immediate resistance level RM1.44. With the RSI indicator pointing upwards, coupled with higher trading volume, we believe it will break out from resistance soon. If this happens, it will move towards the short-term target prices of RM1.53 and RM1.63. The downside support is anticipated at RM1.34, whereby traders may exit on a breach to avoid the risk of a further correction

Trading Call: Buy on breakout RM1.44

Target: RM1.53, RM1.63 (time frame: 2-4 weeks) Exit: RM1.34

Source: AmInvest Research - 11 Jun 2020