Wah Seong Corporation is set to reclaim its 3-month high, as it bounced off the 21-day average line and pushed past the immediate resistance point of MYR0.635 yesterday, on strong trading volume. The bullish bias above that level may push the stock higher towards MYR0.69 or 8 Sep’s high. The next resistance is at MYR0.735, or 25 May’s high. Conversely, the stock may reverse direction towards the average line if it falls below the MYR0.595 support, forming a “lower low” bearish structure beneath the average line.

Source: RHB Securities Research - 9 Dec 2022