Kumpulan Powernet is poised to test the RM3.24 resistance level. With its RSI indicator pointing upwards, coupled with a bullish white candlestick pattern, we think that the bullish momentum will soon push towards the short-term target price of RM3.43 followed by RM3.63. In this case, the downside support is marked at RM2.98, whereby traders may exit on a breach to avoid the risk of a further correction

Trading Call: Buy on breakout RM3.24

Target: RM3.43, RM3.63 (time frame: 2-4 weeks)

Exit: RM2.98

Source: AmInvest Research - 10 Sept 2020