AmBank Research has highlighted two stocks with momentum based on technical charts.
Comfort Gloves Bhd
Comfort Gloves jumped and touched the RM4.75 resistance level. With higher trading volume sighted, coupled with a higher low candlestick pattern, we see that there is a possibility it will experience a technical breakout. If this happens, expect it to travel towards the short-term target prices of RM5.25 and RM5.75.
The downside support is anticipated at RM4.26, whereby traders may exit on a breach to avoid the risk of a further correction
Trading Call: Buy on breakout RM4.75
Target: RM5.25, RM5.75 (time frame: 2-4 weeks)
Closing price: RM4.79 (on Aug 21)
Hextar Global Bhd
Hextar Global is poised to test the 68.5 sen resistance level. With its 21-day moving average pointing upwards, coupled with a higher low candlestick pattern, we think that the bullish momentum will soon push towards the short term target price of 73 sen followed by 79 sen. In this case, the downside support is marked at 63.5 sen, whereby traders may exit on a breach to avoid the risk of a further correction.
Trading Call: Buy on breakout 68.5 sen
Target: 73 sen, 79 sen (time frame: 2-4 weeks)
Exit: 63.5 sen
Closing price: 68 sen (on Aug 21)