Comfort Gloves rebounded from its low and may soon move higher to test the RM3.95 resistance level. Given that the RSI indicator is pointing upwards, coupled with high 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 prices of RM4.25 and RM4.55. The downside support is anticipated at RM3.48, whereby traders may exit on a breach to avoid the risk of a further correction

Trading Call: Buy on breakout RM3.95

Target: RM4.25, RM4.55 (time frame: 2-4 weeks)

Exit: RM3.48

Source: AmInvest Research - 20 Jul 2020