Luxchem Corporation Bhd (LUXCHEM, 5143)

• LUXCHEM recently formed a double bottom pattern and broke above the neckline at RM0.53,signalling strong potential for a trend reversal. Additionally, the stock formed a white marubozu candlestick yesterday, coupled with the positive cross of its 20-day EMA above the 50-day EMA. This bullish crossover has enhanced the near-term positive momentum.

• We expect the positive momentum is set to steer the stock higher and test the next resistance levelof RM0.575 (R1), followed by RM0.60 (R2) in near term.

• On the downside, stop-loss is set at RM0.495, below the 8 Dec’s low.
  

Source: Rakuten Research - 22 Mar 2024

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