Velesto is testing the immediate resistance level as it eyes a bullish breakout. We observed that the 21-day SMA line is trending upwards, showing that the short-term trend is bullish. If the counter manages to break past the MYR0.265 resistance level, market sentiment will improve. In this scenario, the momentum should propel the counter towards MYR0.28, followed by MYR0.30. On the other hand, a fall below the MYR0.24 support level would lead to a correction.

Source: RHB Securities Research - 15 Jan 2024