RHB Investment Bank Bhd (RHB Research) has identified MN Holdings Bhd and VSTECS Bhd as stocks to watch, with both counters showing signs of improving technical momentum and potential upside breakouts.
For MN Holdings, RHB Research said the stock is poised to extend its bullish trajectory after breaking above resistance on strong trading volume.
The stock printed a fresh “higher high” white candlestick and closed above the RM3 resistance level, indicating that the bullish setup remains intact.
Based on the strong momentum, RHB Research expects MN Holdings to see follow-through buying that could push the stock towards the next resistance at RM3.15, followed by RM3.30.
However, the bullish setup would be negated if the stock falls below the RM2.85 support level, which could open the door to a correction.
Meanwhile, VSTECS is showing potential for an upside breakout following the emergence of bullish momentum, according to RHB Research.
The stock recently rebounded and tested the RM1.70 resistance level, signalling an improvement in momentum.
RHB Research said a successful break above RM1.70 could allow VSTECS to trend higher towards RM1.78 and potentially RM1.86 in the near term.
On the downside, a fall below the RM1.62 support level would signal a resumption of the downtrend.
