Tek Seng Holdings is consolidating and has tested the RM0.69 resistance level during its latest session. With the RSI indicator pointing upwards, coupled with high 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 RM0.72 followed by RM0.76. In this case, the downside support is marked at RM0.635, whereby traders may exit on a breach to avoid the risk of a further correction

Trading Call: Buy on breakout RM0.69
Target: RM0.72, RM0.76 (time frame: 2-4 weeks)
Exit: RM0.635

Source: AmInvest Research - 22 Jul 2020