Ho Wah Genting Bhd (9601)

• HWGB closed 14.0% or 18 sen lower to RM1.11 yesterday.

• Since our technical report on 28 July 2020, share price rallied to a high of RM1.52, representing a gain of 125%, before retracing to current level. We believe the pullback provides trading opportunities given their clinical trial for Covid-19 vaccine is pending approval from United States Food and Drug Administration.

• Should the approval be granted, we expect strong buying interest to resume and will likely chart new highs.

• Resistance levels are identified at RM1.17 (R1) and RM1.40 (R2).

• Conversely, support levels are seen at RM0.96 (S1) and RM0.79 (S2).

Source: Rakuten Research - 12 Aug 2020