The stock broke below the triangle pattern recently but appear to have found support near the 50-day EMA. With the formation of a 3-candle reversal pattern over the past 3 days. We think that the stock is ready to turn up again. Supported by the higher highs and higher lows from the July 2023 lows, we reiterate our Technical Buy call on the stock (please read here for our previous write-up).

Both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) are still holding above their respective neutral levels, keeping the bulls in control for now.

We think that aggressive traders may want to go long now with a stop-loss set at RM0.685 (a few ticks below the last swing low). Follow-through buying may lift prices to test RM0.81 and the 52-week high at RM0.83. The next Fibonacci target is at RM0.88 (1.382).

Source: CGS-CIMB Research - 1 Mar 2024