We expect further upside for Guan Chong given that it took out the 2-month downtrend line a few sessions ago. As the 20-day and 50-day EMAs are converging now and likely to confirm its positive crossover soon, the stock looks positive in the near term. A bullish bias may emerge above the RM2.60 level, with a stop-loss set at RM2.34, below the 50-day EMA. Towards the upside, the near-term resistance level is seen at RM2.80, followed by RM3.00.

Entry : RM2.60–2.69

Target : RM2.80, RM3.00

Exit : RM2.34

Source: AmInvest Research - 17 Apr 2023