Malayan Flour Mills is poised to undergo a technical rebound, and test the immediate resistance. The stock bounced off from the intraday low and charted a candlestick with a long lower shadow. The price action shows that bearish pressure is decreasing. In the event that the stock crosses above the MYR0.77 resistance, it will climb towards MYR0.81, then MYR0.86. Towards the downside, falling below the MYR0.73 support will spark a resumption of the correction phase.

Source: RHB Securities Research - 5 Aug 2024