Senheng New Retail is in the process of consolidating sideways, whereby bounced off its support yesterday while heading towards the MYR0.87 resistance level. If it manages to move past the consolidation phase, buying pressure above that level may drive the stock towards MYR0.95, or Feb’s high, before reclaiming its highest level during its listing debut on 25 Jan at MYR1.04. Meanwhile, a fall below the next support level of MYR0.81 may trigger the resumption of a downward correction, as it forms a “lower low” bearish structure beneath the 21-day average line.

Source: RHB Securities Research - 7 Apr 2022