The stock pushed to a new 7-month high on Friday, breaking out above the January high. With the higher highs and higher lows formation staying intact, the stock is likely to continue to work its way higher in the coming days. The rising EMAs also supports the view that the current uptrend is likely to continue.

Both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) managed to edge higher, indicating that the current momentum is still rising.

We think that aggressive traders may want to go long now with a stop-loss set at RM0.39 (marginally below the 20-day EMA). Follow-through buying may lift prices to test the RM0.48 and RM0.515 historical resistance. The following Fibonacci target is at RM0.54(2.00) next.

Source: CGS-CIMB Research - 26 Feb 2024