Dagang Nexchange is poised for an uptrend reversal as it climbed higher and attempted to break above the MYR0.815 immediate resistance last Friday – coupled with strong trading volume. If a breakout above that level happens, the bullish bias may propel the stock towards the MYR0.86 resistance or 14 Jun’s low, and then MYR0.91 – 16 Jun’s high. However, the stock may reverse direction if it falls below the MYR0.76 support – as it may form a “lower low” bearish pattern beneath the 21- day average line.
Source: RHB Securities Research - 1 Aug 2022