Formosa Prosonic Industries is resuming an upwards trajectory after breaking past the MYR3.06 resistance on strong volume. For the past 1-month, the stock has been undergoing a correction, trending below the 21-day SMA line. The latest breakout shows the stock has completed the correction phase and is slated to move higher. The bulls are eyeing to test the next resistance pegged at MYR3.20, followed by MYR3.40. Meanwhile, breaching below the MYR2.92 support will signal that the bears have regained control and a negative price action may follow through.

Source: RHB Securities Research - 26 Oct 2022