KUALA LUMPUR (March 4): Rakuten Trade said ITMAX System Bhd may trend higher after it surged to its all-time high last Friday to break out from its one-month ascending triangle pattern.

In a technical view note on Monday, the research house said with the stock pulling further away from all the exponential moving averages (EMAs) coupled with its relative strength index (RSI) indicator pointing upwards, the bullish momentum appears to be picking up.

“We expect the rising momentum to steer the stock higher and test the next level of resistance of RM2.45 (R1), followed by RM2.55 (R2).

“On the downside, stop-loss is set at RM2.02, below the Feb 14 low,” it said.