Southern Cable was testing the immediate resistance level of MYR0.55. The stock has been moving sideways since early January. Note that it is moving higher towards the resistance level with a tapering trading volume – implying that bearish pressure is on the wane. If it manages to break out from the resistance point, we expect the positive momentum to drive it towards the next resistance of MYR0.58, followed by MYR0.64. A downside breach of the MYR0.49 support level would nullify this expectation, and lead to a further share price correction.

Source: RHB Securities Research - 10 Feb 2021