Thong Guan Industries is set to continue on its uptrend, as it broke above the MYR2.67 resistance level yesterday – forming a “higher high” bullish pattern. If the breakout remains in place, bullish bias above that level may drive the counter upwards further, towards the recent high of MYR2.86 – 12 Jan’s high, followed by MYR3.08 or 23 Oct 2020’s high. If it falls below the MYR2.56 support, the momentum may reverse direction, as it forms a “lower low” bearish pattern below the average line.

Source: RHB Securities Research - 21 Sept 2022