SCGM Bhd (SCGM, 7247)

• SCGM advanced 7.1% or 15 sen to RM2.25 yesterday.

• SCGM tested its support level at RM2.12 yesterday, ended with a positive candle forming a breakout from the downward trend line. Couple with hammer formation recently, we expect a potential reversal to take place possibly moving to higher level.

• Resistance levels are projected at RM2.38 (R1) and further to RM2.50 (R2).

• For downside support, support levels are at RM2.12 (S1) and next at RM2.06 (S2).

Source: Rakuten Research - 20 May 2021