RHB Investment Bank Bhd (RHB Research) has flagged Guan Chong Bhd and SAM Engineering & Equipment (M) Bhd for potential further gains after both counters showed bullish technical signals.
For Guan Chong, RHB Research said the stock could be heading for a bullish breakout after testing its immediate resistance and forming a bullish candlestick on strong trading volume.
A break above the RM1.25 resistance level could propel the stock towards RM1.30, followed by RM1.35.
However, RHB Research warned that a fall below the RM1.20 support level could weaken market sentiment and trigger a resumption of the stock’s correction phase.
Meanwhile, SAM Engineering & Equipment is showing a bullish technical setup after breaking through resistance on high volume.
RHB Research said the counter formed a fresh “higher high” bullish candlestick and closed above the RM4.55 resistance level, signalling underlying bullish momentum.
The stock could subsequently move towards RM4.80, followed by RM5.05.
The bullish setup would be negated if the counter falls below the RM4.30 support level, which could lead to a resumption of its correction phase.
