The stock rose and broke out of its 3-week long rectangle pattern yesterday, backed by a higher trading volume. Yesterday’s white candle also closed above both the 20-day and 50-day EMAs, suggests that buying interest may have resumed. Prices may have another leg up following the said breakout, underpinned by the higher highs and higher lows structure.

Both the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) have been rising steadily, keeping the short-term momentum positive.

We think that aggressive traders may want to go long now with a stop-loss set at RM0.245 (one tick below yesterday’s low). Follow-through buying may send prices to the historical resistances at RM0.315 and RM0.325 next.

Source: CGS-CIMB Research - 17 Apr 2024