Pestech International pulled back from the recent high, pending a breakout that would lead to the resumption of its uptrend. Since crossing the 21-day SMA line, the stock has been trending higher, in tandem with increasing trading volume. If it manages to break out from the immediate resistance of MYR1.36, the uptrend should resume and the price may move towards the next hurdle of MYR1.49, followed by MYR1.62. A downside breach of the MYR1.23 support would negate this expectation, and trigger a stock price correction.

Source: RHB Securities Research - 23 Feb 2021