ARB Bhd (7181)

• ARB surged 32.5% or 13 sen to close at RM0.53 on Tuesday.
• Following our technical report on 15 March 2019, share price has gained 45% to current level. Tuesday’s long white candle saw the price to break the resistance level at RM0.515 on the back of higher-than-average trading volume, which is more than 6-fold of the past 10- day average.
• This is on the back of their record quarterly profits recently announced which has seen consecutive quarterly profit growth. With such stellar results, coupled with the uptick on the key momentum indicator, we expect share price to move potentially higher.
• Resistance levels are expected at RM0.60 (R1) and RM0.62 (R2).
• On the flipside, support levels are expected at RM0.315 (S1) and RM0.305 (S2).

Source: Rakuten Research - 2 May 2019