Guna Chong surged and tested the RM2.76 resistance level. With its RSI indicator in an uptrend, coupled with a higher high candle stick pattern, we see a possibility for a technical breakout. If this happens, we expect it to move towards the short-term target prices of RM2.85 and R2.89. The downside support is projected at RM2.66. Traders are advised to exit on a breach to avoid further losses.

Trading Call: Buy near RM2.76

Target: RM2.85, RM2.89 (time frame: 2–4 weeks)

Exit: RM2.66

Source: AmInvest Research - 28 Jul 2021