• Technical BUY on breakout with +15.9% potential return
• Last price: RM1.20
• Target price: RM1.41, RM1.46
• Support: RM1.15
• Stop-loss: RM1.14

BUY on breakout with a target price of RM1.46 and stop-loss at RM1.14. Based on the daily chart, RMH is making higher highs and higher lows, after a pullback a few months back. Yesterday, we noted the rising RSI and MACD indicators, indicating that the positive momentum will strengthen in the near term. Currently, the DMI indicators are on the verge of making golden cross with each other, which a positive signal is implying that buying momentum has started to overcome the selling momentum. We peg our targets at RM1.41 and RM1.46 in the near term.

Expected Timeframe: 2 weeks to 2 months

Source: UOB Kay Hian Research - 24 Aug 2017