Kretam Holdings jumped and tested the RM0.59 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 the short-term target prices of RM0.62 and RM0.64. The downside support is projected at RM0.56. Traders are advised to exit on a breach to avoid further losses.

Trading Call: Buy on breakout RM0.59

Target: RM0.62, RM0.64 (time frame: 2-4 weeks)

Exit: RM0.56

Source: AmInvest Research - 7 Jan 2021