We expect further upside for Guan Chong after it broke out from the 4-week bullish pennant pattern with a long white candle yesterday. With the 20-day EMA remaining above the 50-day EMA since the bullish crossover in mid-March, the uptrend may continue in the near term. A bullish bias may emerge above the RM2.60 level with stop-loss set at RM2.38, below the 20-day EMA. Towards the upside, near-term resistance level is seen at RM3.00, followed by RM3.20.

Entry : RM2.60–2.67

Target : RM3.00, RM3.20

Exit : RM2.38

Source: AmInvest Research - 23 Apr 2024