Poh Kong Holdings surged and tested the RM0.52 resistance level with higher trading volume. Given that the RSI indicator is pointing upwards, coupled with higher low candlestick patterns, we believe that there could be a technical breakout above the resistance level. If this happens, it may climb towards the short-term target prices of RM0.56 and RM0.60. The downside support is anticipated at RM0.48, whereby traders may exit on a breach to avoid the risk of a further correction

Trading Call: Buy on breakout RM0.52
Target: RM0.56, RM0.60 (time frame: 2-4 weeks)
Exit: RM0.48 RM0.52 RM0

Source: AmInvest Research - 27 Jul 2020