Poh Kong Holdings is set to jump strongly above the previous consolidation phase after it bounced off the 21-day average line recent while breaching above the MYR0.75 previous resistance level – firming up its “higher low” bullish pattern above the average line. As it has now breached the breakout level, the stock is likely to propel further towards the MYR0.80 immediate resistance, followed by the MYR0.83 next resistance, which was 10 Jun’s high. The momentum may reverse if it drops below MYR0.725 – forming a “lower low” bearish pattern, below the average line.

Source: RHB Securities Research - 25 Nov 2022