Redtone Digital surged, testing the RM0.46 resistance level with a higher trading volume. With its 21-day moving average 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 RM0.48 and RM0.50. The downside support is projected at RM0.42. Traders are advised to exit on a breach to avoid further losses.

Trading Call: Buy on breakout RM0.46

Target: RM0.48, RM0.50 (time frame: 2-4 weeks)

Exit: RM0.42

Source: AmInvest Research - 20 Apr 2021