Muhibbah Engineering (M) surged and tested the RM0.905 resistance level. With its RSI indicator in an uptrend, we see a possibility for a technical breakout. If this happens, we expect it to move towards the short-term target prices of RM0.94 and RM0.965. The downside support is projected at RM0.85. Traders are advised to exit on a breach to avoid further losses.

Trading Call: Buy near RM0.905

Target: RM0.94, RM0.965 (time frame: 2-4 weeks)

Exit: RM0.85

Source: AmInvest Research - 22 Feb 2021