Ecomate Holdings is set to resume its upward structure as it broke above the MYR0.595 level on Monday before mildly taking profit yesterday. Supported by the significant trading volumes during the breakout period, the bullish bias above the level is expected to bounce the stock towards MYR0.63 – yesterday’s high – before propelling towards the historical high at MYR0.69, which was 8 Nov 2021’s high. However, the stock may reverse if it falls below the MYR0.575 support, as it may form a “lower low” bearish pattern beneath the 21-day average line.

Source: RHB Securities Research - 3 Aug 2022