RHB Investment Bank Bhd (RHB Research) has identified IOI Corporation Bhd and Oppstar Bhd as stocks with further upside potential following bullish technical breakouts, with both counters showing signs of strengthening momentum.
For IOI Corporation, RHB Research said the stock has extended its bullish trajectory after breaking above the RM4.65 resistance level while continuing to trade above its 21-day simple moving average, indicating a positive short-term trend.
The research house expects the counter to move towards the next resistance at RM4.95, followed by RM5.20 if the momentum continues. However, a fall below the RM4.40 support level would invalidate the bullish setup and potentially trigger a correction.
Meanwhile, Oppstar has staged a bullish breakout after moving past its resistance on strong trading volume. RHB Research said the formation of a bullish candlestick and close above the RM0.71 resistance point to strengthening upward momentum.
Should the positive momentum persist, Oppstar could advance towards RM0.77 before testing the higher resistance at RM0.83, according to the research house.
A decline below the RM0.65 support level, however, would weaken the current technical structure and raise the prospect of a pullback.
