Guan Chong is eyeing to extend its upside movement after staging a bullish breakout with strong volume. The stock printed a long white candlestick and closed above the MYR4.07 resistance, which showed a bullish underlying momentum. After the breakout, we expect a follow-through price action to test the next resistance at MYR4.40, followed by the MYR4.65 level. In the event it falls below the MYR3.78 support, this will dent market sentiment and open the door for a correction.

Source: RHB Securities Research - 13 Jan 2025