S P Setia surged from its low to test the RM0.825 resistance level. With its 21-day moving average pointing upwards, coupled with higher low candlestick pattern, we think that the bullish momentum will soon push towards the short-term target price of RM0.875 followed by RM0.915. In this case, the downside support is marked at RM0.78, whereby traders may exit on a breach to avoid the risk of a further correction

Trading Call: Buy on breakout RM0.825

Target: RM0.875, RM0.915 (time frame: 2-4 weeks)

Exit: RM0.78

Source: AmInvest Research - 25 Aug 2020