The gains in QL share price during mid Oct 2020 has been broadly wiped out as it took a hit from a high of RM 7.50 to a low of RM 4.45. The share price has been struggling to rebound since then, but multiple attempts can be seen to maintain its price above the RM 5.00 psychological level. As of now, there are no concrete signals shown by most indicators, hence the direction is still indecisive. We have a NEUTRAL view on its technical outlook for the medium to long-term.

However, we are quite BEARISH on its short-term outlook since its MACD is still negative and QL fails to sustain above its shortest 21-days EMA level. QL may test its previous low of RM 4.90, with its second support at RM 4.73. However, should buying momentum emerge, the share price needs to break above RM 5.25 before it can revisit the RM5.40 recent high. Our research house has a fundamental BUY call for QL with a TP of RM 5.75.

Source: BIMB Securities Research - 13 Sept 2022