Coastal Contracts is eyeing a bullish breakout, after testing the MYR1.78 immediate resistance level. We observed that the stock has rebounded from the 21-day SMA line, suggesting that the bulls are now in control. If the breakout takes place, the stock would chart a fresh “higher high” bullish pattern. In this case, the positive momentum would propel it towards the next resistance pegged at MYR1.83, followed by MYR1.93. On the downside, a fall below the MYR1.70 support level would indicate that a correction phase has started.

Source: RHB Securities Research - 25 Aug 2022