RHB Investment Bank Bhd (RHB Research) has identified CTOS Digital Bhd and CBH Engineering Holding Bhd as its latest technical stock picks, citing improving bullish momentum and potential upside if key resistance levels are sustained.
RHB Research said CTOS Digital is on the verge of a bullish breakout after forming a long bullish candlestick and testing its immediate resistance level on strong trading volume.
The research house noted that buying interest appears to be strengthening, with the stock poised to confirm a bullish setup should it close above the RM0.66 resistance level.
“If the breakout materialises, the counter may continue its climb towards RM0.70, followed by RM0.74,” it said.
However, RHB cautioned that a fall below the RM0.62 support level could trigger a correction phase and negate the positive outlook.
Meanwhile, CBH Engineering has already established a bullish technical structure after breaking above its RM0.66 resistance level.
According to RHB Research, the stock printed a bullish candlestick and closed above the breakout point, indicating that upward momentum is gaining traction.
The research house expects the counter to extend its gains towards RM0.72 and subsequently RM0.78, provided it remains above the breakout level.
“Bullish momentum is picking up and the stock may continue its upward movement as long as it sustains above the resistance-turned-support zone,” it said.
RHB added that a decline below RM0.60 would invalidate the bullish view and signal a potential reversal in trend.
