RHB Research has identified Mega First Corporation Bhd and Ranhill Utilities Bhd as technical stock picks, citing bullish breakouts that could pave the way for further gains.
For Mega First, RHB Research said the counter’s uptrend could extend after it breached the RM2.90 resistance level, with Friday’s positive price action and close above the level indicating that bullish momentum is gaining pace.
Following the breakout, the research house expects the stock to move towards the next resistance levels at RM3.10 and RM3.20.
However, RHB Research cautioned that a breach of the RM2.80 support would be viewed as a bearish breakout and could open the door to further downside.
Meanwhile, Ranhill Utilities could see its uptrend continue after breaking above the RM2.60 resistance on strong trading volume.
RHB Research said the counter printed a fresh bullish candlestick after climbing above the resistance level last Friday, signalling that a bullish bias has emerged.
The research house expects Ranhill Utilities to move towards RM2.75, followed by RM2.90 if the bullish momentum persists.
A breach of the RM2.45 support, however, would be considered a bearish breakout and could lead to further downward movement.
