Grand-Flo bounced off its support breaching above its recent sideways consolidation phase as trading volume surged on Friday. This marked the first day the stock traded above the 21- day SMA line in the last one month – indicating the bullish bias has just started. As long the stock stays above the MYR0.575 immediate support level, the bullish momentum will stay present to propel it further towards the MYR0.635 and MYR0.665 resistance levels. However, if the stock reverses below the MYR0.555 support level, this trading set-up would be invalid.

Source: RHB Securities Research - 24 May 2021