KUALA LUMPUR (Sept 21): RHB Retail Research said Thong Guan Industries Bhd is set to continue on its uptrend, after it broke above the RM2.67 resistance level on Tuesday (Sept 20), forming a “higher high” bullish pattern.

In a trading stocks note on Wednesday, the research house said if the breakout remains in place, bullish bias above that level may drive the counter upwards further, towards the recent high of RM2.86, Jan 12’s high, followed by RM3.08, or Oct 23, 2020’s high.

“If it falls below the RM2.56 support, the momentum may reverse direction, as it forms a 'lower low' bearish pattern below the average line,” it said.