Thong Guan Industries may be breaking away from the consolidation zone. Note that the trading volume has been increasing lately, which indicates that buying interest is gaining traction. In the event the stock crosses above the immediate resistance of MYR2.90, the bullish momentum may ramp up again. In this scenario, the stock may travel towards the resistance levels of MYR3.05, followed by MYR3.29. Towards the downside, falling below the MYR2.80 support would nullify this expectation.

Source: RHB Securities Research - 26 Nov 2021