RHB Investment Bank Bhd (RHB Research) has identified Hengyuan Refining Company Bhd and Teo Seng Capital Bhd as its latest technical stock picks after both counters broke above key resistance levels, signalling improving bullish momentum.
The research house said Hengyuan Refining is looking to extend its upward movement after staging a bullish breakout on strong trading volume. The stock formed a long bullish candlestick and closed above the RM1.25 resistance level, indicating positive momentum remains intact.
RHB Research expects the counter to test RM1.40, followed by RM1.50, if buying interest continues. However, it said a decline below the RM1.15 support level would invalidate the bullish outlook and trigger a correction.
Meanwhile, Teo Seng Capital was also flagged for a potential continuation of its upward trend after posting a bullish breakout. The stock closed above the RM0.83 resistance level, which RHB Research said signalled a shift in momentum in favour of buyers.
The research house expects the counter to advance towards RM0.87 before potentially testing RM0.91, supported by strengthening bullish pressure. It added that a fall below RM0.79 would invalidate the positive technical setup and mark the beginning of a correction.
