SAM Engineering & Equipment is eyeing to resume its uptrend above the consolidation level – it re-tested the MYR4.48 resistance level recently while inching above the 21-day average line. Supported by the “higher low” bullish pattern within the consolidation levels, we think it likely that the stock breaches the resistance level in the coming sessions. If the breakout happens, the counter may climb higher towards MYR4.84 or Aug’s high, followed by MYR5.58 or 25 Feb’s high. If it falls below the MYR4.05 support, the momentum may reverse direction as it forms a “lower low” bearish pattern below the average line.

Source: RHB Securities Research - 8 Sept 2022