Hap Seng Consolidated is poised to extend its uptrend, as it tried to breach the MYR4.80 resistance yesterday. Since crossing above the 21-day SMA line, the stock has been charting a series of “higher highs”. This, with the ramp-up in trading volume, indicates that a strong bullish momentum is underway. If breakout happens, expect a follow through price action to test the MYR5.20 point, followed by MYR5.50. Towards the downside, falling below the MYR4.30 support will signify that the momentum has changed and the bearish pathway has developed.

Source: RHB Securities Research - 5 Oct 2023