Velesto Energy is poised to stage a bullish breakout while testing the immediate resistance. We observe that the stock has been consolidating sideways beneath the MY0.265 resistance. If it climbs above the immediate resistance, this will confirm that the consolidation phase is over and the resumption of the upside movement. In this case, the stock will climb towards the next resistance pegged at MYR0.29, followed by MYR0.31. Towards the downside, falling below the MYR0.24 support will nullify this expectation and set off a correction phase.

Source: RHB Securities Research - 30 Oct 2023