Formosa Prosonic Industries broke out from its 3-month rectangle pattern with another white candle yesterday, implying that a bullish reversal sign may have occurred. As its 20-day and 50-day EMAs are converging now and are likely to turn up in the near term, bullish momentum is rising. A bullish bias may emerge above the RM3.80 level, while setting a stop-loss at RM3.63. Towards the upside, we are eyeing the near-term resistance level at RM4.20, followed by RM4.40.

Entry: RM3.80–3.95

Target: RM4.20, 4.40

Exit: RM3.63
 

Source: AmInvest Research - 17 Feb 2022