Leader Steel underwent a retracing for three consecutive days, with decreasing volume recently – indicating a potential reversal is likely to occur. If it manages to bounce off its 21-day SMA line and breaches above the immediate resistance of MYR0.73, a “higher low” pattern will occur to signify a bullish momentum. If that happens, the stock may continue to climb towards the next resistance levels of MYR0.775 and MYR0.82. This expectation would be reversed if it drops below the MYR0.65 support level.

Source: RHB Securities Research - 31 May 2021