Kawan Food surged and tested the RM2.59 resistance level. With its RSI indicator pointing upwards, coupled with higher trading volume, we see a possibility for a technical breakout. If this happens, we expect it to move towards short-term target prices of RM2.70 and RM2.75. The downside support is projected at RM2.47. Traders are advised to exit on a breach to avoid further losses.

Trading Call: Buy near RM2.59

Target: RM2.70, RM2.75 (time frame: 2-4 weeks)

Exit: RM2.47

Source: AmInvest Research - 15 Oct 2020