Lay Hong broke out from the resistance level, surging higher on strong trading volume. Trading volume has been flowing in for the past 10 sessions, indicating that the bulls are overshadowing the bears. If it continues to trade above the resistance marked at MYR0.38, the positive momentum will send the stock trading higher to test the next hurdle of MYR0.43, followed by MYR0.47. A downside breach of the MYR0.34 support would negate this expectation, and trigger a stock price correction.

Source: RHB Securities Research - 22 Dec 2020