Leong Hup International jumped and tested the RM0.71 resistance level. With its RSI indicator in an uptrend, 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 RM0.735 and RM0.76. The downside support is projected at RM0.66. Traders are advised to exit on a breach to avoid further losses.

Trading Call: Buy on breakout RM0.71

Target: RM0.735, RM0.76 (time frame: 2-4 weeks)

Exit: RM0.66

Source: AmInvest Research - 10 Feb 2021