VSTECS surged past the RM2.42 resistance level with higher trading volume. Given that the RSI indicator is pointing upwards, coupled with a bullish white candlestick pattern, we believe that there could be a technical breakout above the resistance level. If this happens, it may climb towards the short-term target prices of RM2.53 and RM2.63. The downside support is anticipated at RM2.25, whereby traders may exit on a breach to avoid the risk of a further correction

Trading Call: Buy on breakout RM2.42
Target: RM2.53, RM2.63 (time frame: 2-4 weeks)
Exit: RM2.25

Source: AmInvest Research - 5 Aug 2020