KUALA LUMPUR (May 13): Rakuten Trade said REDtone Digital Bhd (KL:REDTONE) may trend higher after breaking out from its downward channel pattern a few sessions ago.

In a technical view note on Monday, the research house said that in view of the stock pulling further away from all the exponential moving averages (EMAs) coupled with the positive cross of its 20-day EMA above the 50-day EMA, this bullish crossover has enhanced the near-term positive momentum.

“We expect the rising momentum to steer the stock higher and test the next level of resistance of RM1.10 (R1), followed by RM1.15 (R2).

“On the downside, stop-loss is set at 89 sen, below April 30’s low,” it said.