The stock rose and closed at its month-high yesterday (on a close basis) with a white bullish candle. Higher trading volume also sent prices up and pulled away from the 20-day EMA. Given that the 15th April’s gap was successfully filled, the higher highs and higher structure is likely to extend further from here.

The Moving Average Convergence Divergence (MACD) just reconfirmed its golden cross while the Relative Strength Index (RSI) has strengthened further, signalling that the short-term momentum is picking up again.

We think that aggressive traders may want to go long now with a stop-loss set at RM0.97. Follow-through buying may lift prices towards the historical resistance at RM1.14 followed by the next Fibonacci target of RM1.23 (1.382x).

Source: CGS-CIMB Research - 8 May 2024