The stock pushed to a new 5-month high yesterday, breaking out above the July highs at RM2.00. The strong close also sent prices above the resistance of an uptrend channel that begun in April, likely indicating that there is potential for an acceleration in buying momentum in the coming days. Coupled with the higher high and higher low structure, more upside may follow next.
The Moving Average Convergence Divergence (MACD) has just reconfirmed its golden cross while the Relative Strength Index (RSI) have hooked up once more, possibly signalling the bulls are in charge at the moment.
We think that aggressive traders may want to go long here or on weakness with a stop-loss set at RM1.87 (a tick below the last swing low). On the upside, prices may push on to test the historical resistance at RM2.21 and RM2.33 next.
Source: CGS-CIMB Research - 20 Aug 2024
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