Pelikan Int. Corporation is poised to travel higher after it bounced off from below to above the 21-day SMA line, breaching its immediate resistance of MYR0.425 on strong trading volume yesterday. With the latest long white candle or “Bullish Engulfing” pattern, the bullish momentum is picking up pace above the immediate support level to boost the stock towards the next resistance at MYR0.51, followed by MYR0.55 (its multi-month high). However, if the stock falls below the MYR0.41 support, this momentum may reverse.

Source: RHB Securities Research - 4 Aug 2021