RHB Investment Bank Bhd (RHB Research) has identified QL Resources Bhd and MBM Resources Bhd as stocks to watch after both counters recorded bullish breakouts, with the research house seeing potential for further upside.
For QL Resources, RHB Research said the stock could resume its upward trajectory after printing a bullish candlestick and closing above the RM4.10 resistance level.
The breakout signals a shift in momentum to the upside, with follow-through buying potentially pushing the stock towards the next resistance at RM4.30, followed by RM4.50.
However, RHB Research said the bullish setup would be invalidated if QL Resources falls below the RM3.90 support level, which could trigger a correction.
Meanwhile, MBM Resources could extend its uptrend after breaking above the RM4.80 resistance level.
RHB Research said the stock’s bullish candlestick on Monday showed that positive momentum remained intact. Following the breakout, MBM Resources could move towards RM5, followed by the RM5.20 resistance level.
The research house placed support for MBM Resources at RM4.60, noting that a fall below this level would negate the bullish setup and potentially trigger a correction phase.
The calls are based on RHB Research’s technical analysis of both counters, with the 21-day simple moving average and trading volume also forming part of the chart indicators used to assess their momentum.
For traders, the key levels to watch are RM3.90 support and RM4.30 to RM4.50 resistance for QL Resources, while MBM Resources has RM4.60 as support and RM5 to RM5.20 as its next resistance zone.
