South Malaysia Industries is poised to climb higher after forming a “higher low” pattern. Observe the trading volume is increasing in tandem with the share price – this indicates strong buying interest. If it manages to stay above its resistance-turn-support of MYR0.21, the bullish momentum may lift it towards the next resistance level at MYR0.235, followed by MYR0.275. A downside breach of MYR0.20 would negate this expectation and shall see the stock price move down for further correction.

Source: RHB Securities Research - 7 Apr 2021