Dagang Nexchange is expected to reverse its trend from the recent multi-week pullback after it bounced above the 21-day SMA line yesterday. With the staggering volume, it formed a “White Marubozu” bullish pattern, indicating strong buying interest. The bullish momentum is expected to extend further if it manages to break above the MYR0.77 immediate resistance level, which may see the stock travel towards next resistance of MYR0.85, and subsequently, MYR0.90. However, if the stock reverses below the MYR0.68 support level, this expectation will be cancelled.

Source: RHB Securities Research - 18 May 2021