Reservoir Link Energy Bhd (0219)

• RL closed 8.7% or 4 sen higher to RM0.50 yesterday.

• Share price saw a bullish breakout from key resistance levels recently after long period of consolidation signalling a trend reversal. Crude oil price hit 11-week high rising from USD32 to USD42 per barrel is likely to fuel the upward momentum and improving sentiments seen for oil & gas related stocks. Hence, we expect the further mark up in share price from current levels.

• From here, resistance levels are expected at RM0.545 (R1) and RM0.60 (R2) level.

• For the downside, support levels are at RM0.48 (S1) and RM0.42 (S2).

Source: Rakuten Research - 20 Nov 2020