Guan Chong is set to rebound higher from its recent pullback after opening lower near the 21-day average line yesterday. However, it bounced off strongly to breach Monday’s high of MYR2.50 – forming a “Bullish Engulfing” candlestick pattern. If the buying interest persists, it is expected to climb further towards the recent high of MYR2.63 and followed by MYR2.73. If it falls below the MYR2.43 support, the stock may trend downwards below the average line.

Source: RHB Securities Research - 15 Jun 2022