RHB Research has identified Sunway Construction Group Bhd and UWC Bhd as technical trading picks, saying both counters are showing signs of potential bullish breakouts after testing their respective resistance levels.
For Sunway Construction, RHB Research said the counter has been consolidating sideways below the RM7.80 resistance level and recently tested the level with a bullish candlestick.
The stock’s 21-day simple moving average is also trending upwards, suggesting improving bullish momentum.
A breakout above RM7.80 could see Sunway Construction move towards the next resistance levels at RM8.15 and RM8.50. However, a fall below the RM7.45 support could trigger a correction phase.
UWC is also attempting to stage a bullish breakout after testing its immediate resistance, with the stock forming a bullish candlestick on strong trading volume.
RHB Research said a break above the RM7.15 resistance could generate follow-through momentum towards RM7.40 and subsequently RM7.65.
However, a decline below the RM6.90 support level could weaken market sentiment and lead to a resumption of the correction phase.
