Bioalpha Holdings Bhd (0179)

• BIOHLDG closed 2.9% or 0.5 sen higher to RM0.18 yesterday.

• Share price broke above key moving averages with a bullish breakout on the back of higher volume.

• Following yesterday’s announcement on securing their largest ever supply contract of health food products to China valued at RM2.1bn over 5 years, we expect to see follow through buying interest on the stock, possibly surging to new highs on this positive development.

• As such, resistance levels are identified at RM0.200 (R1) and RM0.225 (R2).

• Conversely, support levels are seen at RM0.160 (S1) and RM0.145 (S2).

Source: Rakuten Research - 23 Jul 2020