The stock formed a hammer-like candle yesterday, pulling away from its 20-day EMA. The higher high and higher low structure from the RM0.38 low likely signals that the longer-term uptrend may be resuming. More upside is likely to follow given that prices managed to stay above the previous base-channel resistance-turned-support.

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 RM0.375 (a tick below the recent swing low). On the upside, prices may push on to test RM0.475 and RM0.51 next.

Source: CGS-CIMB Research - 23 Jul 2024