KUALA LUMPUR: Sarawak Oil Palms Bhd and Hibiscus Petroleum Bhd could extend their recent rallies after breaking above key technical resistance levels, with RHB Research expecting further upside for both counters if buying momentum is sustained.

Sarawak Oil Palms emerged as one of the research firm's top technical picks after the plantation stock broke above the RM4.85 resistance level on strong trading volume, signalling continued bullish sentiment.

RHB Research analyst Aiman Kamil Ahmad Shauqi said the stock formed a higher-high white candlestick and closed above the resistance level, reinforcing the positive technical setup.

If the momentum persists, the stock could climb towards the next resistance levels of RM5.15 and RM5.35.

However, a decline below the RM4.65 support level would invalidate the bullish outlook and increase the likelihood of a price correction, he said.

Sarawak Oil Palms, which engages in the cultivation, processing, refining, and trading of palm products, has gained about 30.4 per cent so far this year. The counter rose from RM3.75 on Jan 2 to RM4.89 at Tuesday's close, giving the company a market capitalisation of about RM4.45 billion.

RHB Research also maintained a positive technical view on Hibiscus Petroleum, saying the oil and gas producer could see further gains after breaking above the RM1.85 resistance level.

The breakout signals strengthening buying interest and may pave the way for the stock to advance towards RM2.00, followed by the next resistance at RM2.15, the research house said.

It added that the positive technical outlook would be negated if the stock falls below the RM1.70 support level, which could trigger a fresh round of selling pressure.

Hibiscus Petroleum, Malaysia's first listed independent oil and gas exploration and production company, has risen about 25.2 per cent year-to-date, climbing from RM1.51 on Jan 2 to RM1.89 at Tuesday's close, valuing the company at about RM1.39 billion.