Lay Hong is set to propel towards its 9-month high as it bounced off the 21-day SMA line, reclaiming above the MYR0.275 previous breakout level and closing in positive territory.
Backed by surging trading volume and the “higher high” bullish pattern, the stock is set to climb towards the MYR0.325 resistance (22 Jun 2022’s high), followed by MYR0.375, the next resistance, ie its 3-year high.
However, if the stock falls below the support of MYR0.26, our expectations would be negated.
Poh Kong Holdings is likely to resume its rebound towards the recent high as it opened stronger yesterday following a recent pullback despite taking profit mildly towards the close.
If it manages to sustain above the MYR0.825 immediate support, which was also the previous breakout level, the bullish bias above that level may drive the stock up to reclaim the MYR0.90 recent high, before propelling towards MYR0.96, the 52-week high.
If it drops below the next support level of MYR0.80, this may reverse the momentum as it trades below the 21-day average line.
