Guan Chong formed a long white candle, indicating that the momentum of buying could be strong. Yesterday’s white candle has engulfed the prior one to form a “Bullish Engulfing” pattern, implying a potential rebound. A bullish bias may appear above the MYR2.20 level, with an exit set below the MYR2.03 threshold. Towards the upside, the near-term resistance is at MYR2.38. This is followed by the MYR2.52 level.

Source: RHB Securities Research - 31 Oct 2018