VSTECS Bhd (VSTECS, 5162)

• VSTECS closed 5.4% higher at RM1.36 on Friday.
• There was a formation of bullish hammer on 21 Sept which signalled a potential reversal of trend from its short-term downtrend. On Friday, VSTECS has broken out from its downtrend line with high volume to close above all its key moving averages.
• There is also a MACD bullish crossover found in its MACD indicator. Backed by an uptick in RSI, we expect the buying momentum to continue.
• Resistance levels are identified at RM1.43 (R1) and RM1.50 (R2).
• On the flipside, support levels are pegged at RM1.29 (S1) and RM1.24 (S2).

Source: Rakuten Research - 27 Sept 2021