VSTECS surged and tested the RM2.00 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 RM2.12 and RM2.24. The downside support is anticipated at RM1.82, whereby traders may exit on a breach to avoid the risk of a further correction

Trading Call: Buy on breakout RM2.00

Target: RM2.12, RM2.24 (time frame: 2-4 weeks)

Exit: RM1.82

Source: AmInvest Research - 7 Oct 2020