Thong Guan Industries jumped and touched the RM2.86 resistance level. With its RSI indicator pointing upwards, coupled with a bullish engulfing candle stick pattern, there is a good chance it will break out and head towards the short-term target price of RM3.00, followed by RM3.12. The downside support is marked at RM2.69. Traders are advised to exit on a breach to avoid further losses.

Trading Call: Buy on breakout RM2.86

Target: RM3.00, RM3.12 (time frame: 2-4 weeks)

Exit: RM2.69

Source: AmInvest Research - 3 Dec 2020