Dufu Technology Corp surged and tested the RM3.49 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 RM3.71 and RM3.82. The downside support is anticipated at RM3.27, whereby traders may exit on a breach to avoid the risk of a further correction

Trading Call: Buy on breakout RM3.49

Target: RM3.71, RM3.82 (time frame: 2-4 weeks)

Exit: RM3.27

Source: AmInvest Research - 6 Oct 2020