PA Resources was consolidating sideways, but is poised to move higher to test the upside resistance. Trading volume has been increasing for the past eight sessions, indicating strong buying interest. If it breakouts from the resistance at MYR0.195, the positive momentum will send the stock higher to test the next hurdle at MYR0.21, followed by MYR0.23. A downside breach of the MYR0.165 support would negate this expectation, and result in a stock price correction.

Source: RHB Securities Research - 21 Dec 2020