Mieco Chipboard is eyeing a technical breakout after it rebounded strongly from its support and attempted to hit the MYR0.70 resistance level. If it manages to reclaim above that level, a bullish bias may emerge to propel the stock above the 21-day average line towards hitting the MYR0.735 immediate resistance, before advancing to the MYR0.795 recent high – also its multi-year high. Meanwhile, a drop below the MYR0.65 support may trigger the resumption of a downward correction, forming a “lower low” bearish structure, below the average line.

Source: RHB Securities Research - 10 May 2022