Pecca Group is poised to test the immediate resistance level of RM0.89. With an RSI pointing upwards, coupled with higher trading volume, we think that it may break out from the resistance soon. If this happens, expect it to reach the short-term target price of RM0.92 followed by RM0.965. In this case, the downside support is marked at RM0.815, whereby traders may exit on a breach to avoid the risk of a further correction

Trading Call: Buy on breakout RM0.89

Target: RM0.92, RM0.965 (time frame: 2-4 weeks)

Exit: RM0.815

Source: AmInvest Research - 25 Jun 2020