Hengyuan Refining is attempting to stage a breakout after printing a bullish candlestick on high volume. The stock has found an interim base and crossed above the 21-day SMA line, showing the bullish momentum is gaining traction now. In the event it climbs above the MYR2.13 resistance, the bullish setup will be confirmed. In this case, it should test the next resistance at MYR2.22, followed by MYR2.30. On the other hand, a fall below the MYR1.98 support level will resume the downside movement.

Source: RHB Securities Research - 3 Oct 2024