Thong Guan Industries surged and touched the RM2.27 resistance level. With its RSI indicator pointing upwards, coupled with a higher high candle stick pattern, there is a good chance that it would experience a technical breakout and head towards the short-term target price of RM2.40, followed by RM2.48. The downside support is marked at RM2.06. Traders are advised to exit on a breach to avoid further losses.

Trading Call: Buy on breakout RM2.27

Target: RM2.40, RM2.48 (time frame: 2-4 weeks)

Exit: RM2.06

Source: AmInvest Research - 23 Mar 2021