Formosa Prosonic Industries is poised for a technical breakout, after it bounced off the 21-day average line. It could hit the immediate resistance of MYR4.33 on higher volume – thereby setting up a “higher low” bullish pattern. If a breakout occurs above this level, bullish momentum may follow through towards the MYR4.54 resistance level, before entering uncharted territory to hit the higher resistance of MYR4.70. If it falls beneath the MYR4.05 support level, the momentum may dissipate.

Source: RHB Securities Research - 21 Oct 2021