Thong Guan Industries rebounded and tested the RM2.80 resistance level. With its RSI indicator in an uptrend, coupled with a 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 RM2.96 and RM3.00. The downside support is projected at RM2.61. Traders are advised to exit on a breach to avoid further losses.

Trading Call: Buy on breakout RM2.80

Target: RM2.96, RM3.00 (time frame: 2-4 weeks)

Exit: RM2.61
 

Source: AmInvest Research - 2 Sept 2021