Tek Seng surged through the MYR0.74 level on strong volumes in its latest session by printing a ‘White Marubozu’ candle. Although RSI is above the 70 mark, is it not excessive relative to its historical levels. The technical rebound may resume with a target price of MYR0.85, followed by MYR0.90. In the event the stock dips below the MYR0.74 mark, the bullish bias may be significantly reduced. Further support is then expected at MYR0.66.

Trading Call: Buy on further technical rebound above MYR0.74 Target: MYR0.85, MYR0.90 (time frame: 2-4 weeks) Exit: MYR0.66

Source: AmInvestment Research - 8 Feb 2017