Dancomech Holdings is set for a technical rebound as it bounced off from the recent pullback and breached the immediate resistance of MYR0.60 on strong trading volume – forming a long white candlestick. If it sustains above that level, the buying momentum may propel the stock towards the next resistance at MYR0.645, followed by MYR0.685. However, if it falls below the MYR0.55 support level – forming a “lower low” pattern – this expectation will be cancelled.

Source: RHB Securities Research - 10 Sept 2021