Sarawak Consolidated Industries surged on higher trading volume yesterday, and is preparing to set a new record high. A bullish bias emerged above the immediate resistance of MYR5.00. As trading volume has been trending north lately, we believe the positive momentum will send the stock higher to test the next resistance of MYR5.30, followed by MYR5.70. A downside breach of the MYR4.50 support would negate this expectation, and trigger a price correction.

Source: RHB Securities Research - 8 Dec 2020