RHB Retail Research cited that LGMS is poised for a rebound, as it recently bounced off the immediate support level and formed a “Hammer” bullish reversal candlestick.
In a note, the research house said the stock moved towards the immediate resistance point of MYR1.19 on Tuesday.
If a breakout above this resistance level occurs, the bullish bias may drive the stock further towards the next resistance of MYR1.27, followed by the MYR1.40 mark.
However, if the stock falls below the support level of MYR1.12, our expectations would be negated.
SMRT Holdings is also poised for a strong rebound and is expected to reclaim its recent high after bouncing off the 21-day average line and breaching above the previous resistance level of MYR0.445.
The surge in trading volume suggests a pick-up in buying interest. If the breakout persists, the stock is likely to surge towards the recent high of MYR0.54, and may hit MYR0.60.
However, if the stock drops below the support level of MYR0.375, this may spark a reversal in momentum and a bearish pattern of a “lower low” below the average line.
