Guan Chong rebounded from its low and may move higher to test the RM2.70 resistance level. With the RSI indicator above the 50% threshold, coupled with higher trading volume, there is a possibility it will experience a technical breakout if it trades above the resistance level. If this happens, expect it to travel towards the short-term target price of RM2.80 followed by RM2.91. In this case, the downside support is marked at RM2.53, whereby traders may exit on a breach to avoid the risk of a further correction

Trading Call: Buy on breakout RM2.70

Target: RM2.80, RM2.91 (time frame: 2-4 weeks)

Exit: RM2.53

Source: AmInvest Research - 1 Jul 2020