Wong Engineering is staging a rebound as it recently bounced off the 21-day average line and pushed past the previous resistance of MYR0.385, forming a “higher high” bullish structure. As the stock is supported by partial profit-taking with lower trading volume for the past three sessions – but remaining above the breakout level – the latest “higher low” bullish pattern should indicate that the uptrend reversal pattern is firming up further. Hence, the bulls should push the stock towards the recent high of MYR0.405, followed by MYR0.42 or 6 Oct’s high. The momentum may be reversed if it drops below the strong support of MYR0.37, and trades below the average line.

Source: RHB Securities Research - 21 Nov 2022