SFP Tech Holdings is poised for an uptrend reversal after bouncing off the 21-day SMA line and testing the MYR0.875 resistance on strong trading volume. If a breakout above that level happens – forming a “higher high” bullish pattern – the bullish momentum will drive the stock higher towards the MYR0.94 resistance, followed by the MYR1.02 next resistance, ie 13 Dec 2023’s high. However, falling below the MYR0.79 support will reverse the momentum, as the counter would trade below the SMA line and form a "lower low" bearish structure.

Source: RHB Securities Research - 24 May 2024