RHB Investment Bank Bhd (RHB Research) has picked Sunway Construction Group Bhd and Frontken Corporation Bhd as stocks to watch, citing improving technical momentum and potential further gains.
For Sunway Construction, the counter has been moving sideways in a consolidation phase but could be preparing for a breakout above its resistance level.
RHB Research said the stock remained above its 21-day simple moving average (SMA) during the latest session, suggesting that bullish momentum is picking up again.
A close above the RM8.20 resistance would confirm the bullish bias and potentially send the stock towards RM8.55, followed by RM8.85.
However, a fall below the RM7.90 support could trigger a downward correction.
Frontken, meanwhile, has resumed its upward trajectory following a bullish breakout in the latest session.
The counter formed a long Bullish Marubozu candlestick and closed above the RM5.35 resistance, signalling positive underlying momentum.
RHB Research said the breakout could pave the way for further gains, with the stock potentially moving towards RM5.65 before testing RM5.90.
The bullish setup would be invalidated if the stock falls below the RM5.10 support, which could trigger a bearish reversal.
