Formosa Prodonic Industries is consolidating and moving to test the RM1.46 resistance level with sustainable trading volume. Given that the 21 days SMA indicator trending upwards, coupled with higher lows candlestick pattern, we think that the bullish momentum will continue to travel towards the short term target prices of RM1.50 and RM1.55. The downside support is anticipated at RM1.41, whereby traders may exit on a breach to avoid the risk of a further correction

Trading Call: Buy on breakout RM1.46

Target: RM1.50, RM1.55 (time frame: 2-4 weeks)

Exit: RM1.41

Source: AmInvest Research - 21 Jul 2020