Kim Loong Resources surged and tested the RM1.44 resistance level. With its RSI indicator 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 RM1.50 and RM1.53. The downside support is anticipated at RM1.38, whereby traders may exit on a breach to avoid the risk of a further correction

Trading Call: Buy on breakout RM1.44

Target: RM1.50, RM1.53 (time frame: 2-4 weeks)

Exit: RM1.38

Source: AmInvest Research - 2 Oct 2020