Rubberex Corporation (M) may soon scale higher to test the RM6.26 resistance level. With the 21-day moving average pointing upwards, coupled with a higher trading volume, we think that there could be a techincal breakout above the resistance level. If this happens, it will climb towards the technical target price of RM6.56 followed by RM6.86. In this case, the downside support is marked at RM5.70, whereby traders may exit on a breach to avoid the risk of a further correction

Trading Call: Buy on breakout RM6.26
Target: RM6.56, RM6.86 (time frame: 2-4 weeks)
Exit: RM5.70

Source: AmInvest Research - 11 Aug 2020