Coastal Contracts is rising higher to test the immediate resistance level at MYR0.78. We observe that the stock has been moving sideways since January, while a successful breakout from the resistance will see a new trend forming. If this happens, expect the positive momentum to drive it towards the next resistance level pegged at MYR0.825 followed by MYR0.875. A downside breach of the MYR0.73 support would nullify this expectation and see further share price correction.

Source: RHB Securities Research - 18 Feb 2021