KUALA LUMPUR (Nov 7): RHB Retail Research said Dagang NeXchange Bhd is poised for an uptrend reversal after it attempted to move past 78 sen last Friday (Nov 4), firming up its position above the 21-day average line with strong trading volume.

In a trading stocks note on Monday, the research house said that if a breakout occurs above that level, the buying interest would accelerate to propel the stock towards the 81 sen resistance — the highest level since Oct 5 — followed by the next resistance at the 85 sen, or Sept 13’s high.

“Conversely, the bullish momentum may reverse if it falls below the 75 sen support, forming a 'lower low' bearish structure below the average line,” it said.