Mr DIY Group (M) Bhd and Hong Leong Industries Bhd are both poised for further upside after breaking key resistance levels on strong volume, according to RHB Investment Bank Bhd (RHB Research), which sees bullish continuation patterns forming in both counters.
The research house said Mr DIY has extended its bullish trajectory after decisively breaking above the RM1.65 resistance level on strong trading volume, forming a fresh “higher high” candlestick pattern.
The breakout signals sustained momentum, with the stock expected to test the next resistance levels at RM1.75 and subsequently RM1.90.
However, RHB Research cautioned that a fall below the RM1.50 support level would negate the bullish setup and open the door to a corrective phase.
For Hong Leong Industries, RHB Research noted a similar technical breakout after the stock closed above RM19 on strong volume, also forming a “higher high” pattern that reinforces its upward trend.
The research house said the counter is now expected to target RM20.10, followed by RM21.20, in the next phase of its advance, although a drop below the RM17.90 support level would signal a breakdown of the bullish structure.
RHB Research’s technical outlook suggests both counters are benefitting from strong momentum-driven buying interest, with price action indicating potential continuation of their respective uptrends in the near term, provided key support levels hold.
