RHB Investment Bank Bhd (RHB Research) has identified TMK Chemical Bhd and VS Industry Bhd as its latest technical trading picks after both stocks broke above key resistance levels, signalling the potential for further gains.
TMK Chemical has resumed its upward momentum after staging a technical breakout above its 21-day simple moving average (SMA) and closing above the RM2.30 resistance level. According to RHB Research, the latest price action indicates a bullish technical setup.
The research house expects the stock to extend its rally towards RM2.55, with the next upside target at RM2.80. However, it said a fall below the RM2.05 support level would invalidate the bullish outlook and trigger a correction.
Meanwhile, VS Industry is also showing signs of strengthening after breaking above the RM0.23 resistance on strong trading volume.
RHB Research said the stock formed a bullish white candlestick, suggesting buying momentum remains intact. As long as it holds above the breakout level, the counter could advance towards RM0.25 before testing RM0.27.
The research house noted that the bullish setup would be negated if the stock falls below its RM0.21 support level, which could lead to renewed downside pressure.
