Karex staged a bullish breakout on high volume last Friday, breaking past the MYR0.375 resistance. Observe that the stock has been charting “higher highs” with “higher lows” since climbing above the 21-day SMA line. Coupled with trading volume increasing recently, the bullish momentum should propel the stock towards MYR0.40, followed by MYR0.42. On the other hand, falling below the MYR0.355 support will nullify our expectation and resume the downward correction.

Source: RHB Securities Research - 25 Oct 2022