We think the buying interest for Cape EMS may have returned after it breached above the 1-month downtrend line derived from  the April high. With the stock posting a long white candle and recovering above the 20-day EMA yesterday, bullish momentum  may be present now. A bullish bias may emerge above the RM1.33 level, with a stop-loss set at RM1.20, below the 15 May low.  Towards the upside, the near-term resistance level is seen at RM1.50, followed by RM1.54.

Entry : RM1.33–1.37

Target : RM1.50, RM1.54

Exit : RM1.20

Source: AmInvest Research - 19 May 2023