VSTECS bounced off the 21-day SMA line, and is poised to test the immediate resistance level marked at MYR2.42. Since crossing above the 21-day SMA line in early January, the stock has been moving higher, in tandem with increasing trading volume. If it breaks out from the said resistance level, we expect positive momentum to lift it towards the next resistance level pegged at MYR2.55, followed by MYR2.65. A downside breach of the MYR2.20 support level would nullify this expectation, and see further share price correction.

Source: RHB Securities Research - 3 Feb 2021