RHB Investment Bank Bhd (RHB Research) has picked Hengyuan Refining Company Bhd and HE Group Bhd as stocks to watch, with both counters showing bullish technical setups following breakouts above key resistance levels.
For Hengyuan Refining, RHB Research said the counter could resume its bullish trajectory after climbing above the RM3.40 breakout level on high trading volume. The stock formed a bullish candlestick pattern, indicating that the positive technical setup remains intact.
Following the breakout, RHB Research expects Hengyuan Refining to extend its upside towards RM4, followed by RM4.50. However, a breach below the RM2.80 support level would invalidate the bullish setup and open the way for a correction.
Meanwhile, HE Group is also showing signs of further upside after breaking above resistance on strong trading volume.
RHB Research noted that the counter had formed a series of “higher high” candlesticks and closed above the RM0.93 resistance level, pointing to strong bullish momentum.
As long as HE Group remains above the breakout point, RHB Research expects the stock to test RM1 before moving towards the next resistance at RM1.08.
A fall below the RM0.86 support level, however, would invalidate the bullish setup.
