LGMS is set to resume an uptrend momentum as it rebounded following two consecutive sessions of decline – forming a “higher low” bullish pattern above the previous breakout point of MYR1.25. Note that on 27 Oct, the stock demonstrated a strong breakout above that level before retracing from the recent high. Assuming the buying momentum follows through, the stock will likely climb further towards the MYR1.38 resistance, followed by the historical high level at the MYR1.45, or 12 Sep’s high. Conversely, the bullish momentum may reverse if it falls below the MYR1.16 support, forming a “lower low” bearish structure below the 21-day average line.

Source: RHB Securities Research - 8 Nov 2022