Mestron saw its share price jump higher in tandem with an increase in trading volumes. With the recent trading volume surge, we think the sentiment tends to be bullish and that the stock is ready to challenge the immediate resistance level marked at MYR0.215. If it breaks out from the resistance, we expect the positive momentum to drive it towards the next resistance level pegged at MYR0.24. This is followed by MYR0.255. A downside breach of the MYR0.19 support level will nullify this expectation and see further share price corrections.

Source: RHB Securities Research - 29 Dec 2020