UWC is poised for a technical breakout as it bounced off the 21- day average line to close at the immediate resistance level of MYR4.06. If it breaches above that level – forming a “higher high” bullish structure – a bullish bias could emerge to propel the stock upwards towards MYR4.40 (21 Feb’s high), followed by MYR4.80 – 15 Feb’s high. However, the stock may reverse direction if it falls below the MYR3.72 support – as it may form a “lower low” bearish pattern below the average line.

Source: RHB Securities Research - 12 Aug 2022