Kawan Food jumped and tested the RM2.05 resistance level. With its RSI indicator pointing upwards, coupled with a higher high candle stick pattern, we see a possibility for a technical breakout. If this happens, we expect it to move towards the short-term target prices of RM2.19 and RM2.28. The downside support is projected at RM1.89. Traders are advised to exit on a breach to avoid further losses.

Trading Call: Buy on breakout RM2.05

Target: RM2.19, RM2.28 (time frame: 2-4 weeks)

Exit: RM1.89

Source: AmInvest Research - 12 Jan 2021