Thong Guan Industries formed a long white candle, indicating that the momentum of buying could be strong. In view that the 21-day SMA line is likely to begin turning upwards, this also implies a positive outlook sentiment. A bullish bias may appear above the MYR2.71 level, with an exit set below the MYR2.60 threshold. Towards the upside, the near-term resistance is at MYR2.96. This is followed by the MYR3.08 level.

Source: RHB Securities Research - 6 May 2019