JCY International is poised for a technical breakout, after it bounced off the 21-day SMA line to test the MYR0.19 immediate resistance level yesterday, coupled with surging trading volume. If a breakout happens, the stock may climb higher towards the MYR0.225 YTD high, followed by the MYR0.29 next resistance. Conversely, falling below the MYR0.16 support, forming a “lower low” bearish pattern below the SMA line, would dent sentiment and lead it to a downtrend.

Source: RHB Securities Research - 26 Jul 2023