Guan Chong broke out from its 6-week bullish rectangle pattern on Friday, implying that its previous uptrend may have resumed. The stock’s move above the RM2.50 resistance coupled with its rising EMAs, indicates that the near term bullish momentum may persist. A bullish bias may emerge above the RM2.50 level, with a stop-loss set at RM2.35, below the 50-day EMA. Towards the upside, the near-term resistance level is seen at RM2.70, followed by RM2.80.

Entry : RM2.50–2.57

Target : RM2.70, RM2.80

Exit : RM2.35

Source: AmInvest Research - 16 Jan 2023