Lii Hen Industries is poised to test the RM2.96 resistance level. With the momentum indicator RSI pointing upwards, coupled with higher trading volume, we see that there is a possibility it will experience a technical breakout. If this happens, expect it to travel towards the short-term target prices of RM3.10 and RM3.20. The downside support is anticipated at RM2.85, whereby traders may exit on a breach to avoid the risk of a further correction

Trading Call: Buy on breakout RM2.96

Target: RM3.10, RM3.20 (time frame: 2-4 weeks)

Exit: RM2.85

Source: AmInvest Research - 12 Aug 2020