Lay Hong is set to rebound higher from its recent pullback as it bounced off the 21-day average line yesterday while breaching the MYR0.275 resistance. This was coupled with improved trading volumes. If the breakout sustains, the renewed bullish momentum may propel the stock towards the MYR0.295 next resistance based on 27 Jun’s high. This is followed by MYR0.31 or 23 Jun’s high. However, Lay Hong may reverse direction if it falls below the MYR0.255 support – forming a “lower low” bearish pattern.

Source: RHB Securities Research - 8 Jul 2022