Formosa Prosonic Industries is poised to extend its uptrend after breaking past the MYR2.75 resistance on high volume. Trading volume has been increasing in tandem with the share price, which indicates that a strong positive momentum is underway. After the breakout, the stock may travel towards the next resistance of MYR2.90, followed by the MYR3.10 level. On the other hand, falling below the MYR2.60 support will negate the bullish setup and kick-start the correction phase.

Source: RHB Securities Research - 2 Oct 2023