Rhone Ma Holdings jumped and tested the RM0.855 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 RM0.90 and RM0.92. The downside support is projected at RM0.81. Traders are advised to exit on a breach to avoid further losses.

Trading Call: Buy on breakout RM0.855

Target: RM0.90, RM0.92 (time frame: 2-4 weeks)

Exit: RM0.81

Source: AmInvest Research - 25 Jan 2021