DRB-HICOM surged and tested the RM2.03 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 the short-term target prices of RM2.10 and RM2.15. The downside support is projected at RM1.96. Traders are advised to exit on a breach to avoid further losses.

Trading Call: Buy on breakout RM2.03

Target: RM2.10, RM2.15 (time frame: 2-4 weeks)

Exit: RM1.96

Source: AmInvest Research - 16 Nov 2020