Guan Chong is poised to extend the technical rebound while testing the immediate resistance. The stock printed a fresh bullish candlestick yesterday, showing that market sentiment has turned positive. In the event it breaks past the MYR2.85 resistance, this will attract further buying interest. Riding on this renewed momentum, the counter will climb towards the MYR3 mark, followed by the MYR3.15 level. However, a fall below the MYR2.60 support resumes the correction phase.

Source: RHB Securities Research - 12 Sept 2024