The stock climbed and broke out of its 3-week long triangle consolidation yesterday with a long white candle. Prices closed at its 52-week high (on a close basis) following the said breakout. The rising EMAs and coupled with the higher highs and higher lows sequence from the RM1.72 low suggest that the uptrend may have resumed.

The Moving Average Convergence Divergence (MACD) showed easing pressure while the Relative Strength Index (RSI) has hooked up sharply, indicating that buying momentum is rising.

We think that aggressive traders may want to go long here or on weakness with a stop-loss set at RM2.23. On the upside, prices may climb to test the historical resistances at RM2.68 and RM2.80 next.

Source: CGS-CIMB Research - 8 May 2024