Sime Darby is consolidating, touching the RM2.35 resistance level. With its RSI indicator pointing upwards, coupled with higher trading volume, we think that there could be a technical breakout towards the short-term target price of RM2.43 followed by RM2.47. In this case, the downside support is marked at RM2.27, whereby traders may exit on a breach to avoid the risk of a further correction

Trading Call: Buy on breakout RM2.35

Target: RM2.43, RM2.47 (time frame: 2-4 weeks)

Exit: RM2.27

Source: AmInvest Research - 23 Sept 2020