Boilermech Holdings surged and tested the RM0.72 resistance level. With its RSI indicator pointing upwards, coupled with sustainable 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 RM0.745 and RM0.765. The downside support is projected at RM0.675. Traders are advised to exit on a breach to avoid further losses.

Trading Call: Buy on breakout RM0.72

Target: RM0.745, RM0.765 (time frame: 2-4 weeks)

Exit: RM0.675

Source: AmInvest Research - 3 Nov 2020