The stock broke out of its 1.5year sideway trading range on Friday, backed by rising volume. The stock also broke out of its 2-month consolidation triangle to close at a new 52-week high, which signals that the bulls are ready to lift prices in the days ahead. Coupled with the rising EMAs, the stock appear poise for a rerating higher over the next few days.

Both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) are in positive territory, supporting an upbeat momentum.

We think that aggressive traders may want to go long here or on weakness with a stop-loss set at RM0.14 (a tick below the 20-day EMA). On the upside, prices may push on to test RM0.18 and RM0.205 next.

Source: CGS-CIMB Research - 22 Jul 2024