Guan Chong may test its YTD high after it moved away its recent consolidation phase – breaching the immediate resistance of MYR2.81 on high trading volume. The “higher high” pattern above the breakout level suggests that a bullish bias has emerged. As such, the bullish momentum is expected to drive the stock towards the next resistance of MYR3.00, followed by its YTD high of MYR3.20. Meanwhile, breaching below the MYR2.76 support would see the momentum fade away.

Source: RHB Securities Research - 19 Aug 2021