KUALA LUMPUR: Shares of YTL Power International Bhd look poised to extend their upward momentum after staging a bullish breakout above a key resistance level, showing signs of renewed investor confidence and strengthening technical indicators.
Although the stock last month fell to a low of RM2.59, it has since mounted a strong recovery, successfully breaking above the RM2.95 resistance level, supported by the formation of a Bullish Marubozu candlestick - a pattern typically associated with strong buying pressure and minimal selling resistance throughout the trading session.
RHB Research said this development reinforces the view that bullish momentum is firmly in control, underpinned by a constructive uptrend structure.
With the breakout now confirmed, YTL Power may continue its climb towards the next resistance at RM3.15, with further upside potential towards RM3.35 if buying interest remains sustained, the firm said in a note.
However, it noted that investors should remain cautious of downside risks. A pullback below the RM2.75 support level would weaken the current bullish setup and potentially signal a near-term trend reversal.
Meanwhile, SAM Engineering & Equipment (M) Bhd is showing early signs of a technical recovery, attempting to build momentum after rebounding above its 21-day Simple Moving Average (SMA), a commonly watched short-term trend indicator.
The stock has recently formed a series of higher highs, suggesting that buying pressure is gradually re-emerging and that a potential trend reversal could be taking shape.
RHB Research said a breakout above the RM3.20 resistance level would serve as confirmation of this shift, likely drawing fresh interest from momentum traders and investors.
It noted that should this breakout materialise, the company could advance towards RM3.35, with the possibility of testing the RM3.50 level if bullish momentum accelerates.
On the downside, failure to hold above RM3.05 would invalidate the recovery narrative and indicate a continuation of its prior corrective phase.
