Thong Guan Industries surged and touched the RM2.84 resistance level. With its 21-day moving average in an uptrend, coupled with a higher trading volume, there is a good chance that it would experience a technical breakout and head towards the short-term target price of RM2.95, followed by RM2.97. The downside support is marked at RM2.73. Traders are advised to exit on a breach to avoid further losses.

Trading Call: Buy on breakout RM2.84

Target: RM2.95, RM2.97 (time frame: 2-4 weeks)

Exit: RM2.73
 

Source: AmInvest Research - 22 Nov 2021