Formosa Prosonic Industries is testing the resistance level marked at MYR2.86, with higher trading volume. We observed that since January, the stock has formed a higher highs and higher lows pattern, indicating a strong bullish formation. If it breaks out from the resistance level, we believe the bullish momentum will extend the uptrend towards the next resistance level at MYR2.98, followed by MYR3.25. A downward breach of the MYR2.56 support level will negate this expectation.

Source: RHB Securities Research - 3 Feb 2021