Poh Kong surged higher to test the RM0.48 resistance level during its intraday high. With the RSI indicator pointing upwards, coupled with higher trading volume, we believe that there could be a technical breakout above the resistance level. If this happens, it will travel towards the short-term target price of RM0.495 followed by RM0.51. In this case, the downside support is marked at RM0.46, whereby traders may exit on a breach to avoid the risk of a further correction

Trading Call: Buy on breakout RM0.48

Target: RM0.495, RM0.51 (time frame: 2-4 weeks)

Exit: RM0.46

Source: AmInvest Research - 8 Jul 2020