We believe that the buying interest on Nestcon may have returned following its breakout above the 2-week bullish rectangle pattern yesterday. As the 20-day and 50-day EMAs have confirmed their bullish crossover a few sessions ago, the stock looks positive in the near term. A bullish bias may emerge above the RM0.42 level, with a stop-loss set at RM0.39, below the 50-day EMA. Towards the upside, the near-term resistance level is seen at RM0.46, followed by RM0.48.

Entry : RM0.42–0.44

Target : RM0.46, RM0.48

Exit : RM0.39

Source: AmInvest Research - 12 Oct 2022