Tek Seng Holdings surged and tested the RM0.87 resistance level. With its higher high candle stick pattern, coupled with higher trading volume, we see a possibility for a technical breakout. If this happens, we expect it to move towards the short-term target prices of RM0.91 and RM0.95. The downside support is projected at RM0.795. Traders are advised to exit on a breach to avoid further losses.

Trading Call: Buy on breakout RM0.87

Target: RM0.91, RM0.95 (time frame: 2-4 weeks)

Exit: RM0.795

Source: AmInvest Research - 13 Oct 2020