The pullback from the 52-week high appears to have found support above the 200-day EMA. Yesterday’s white candle broke out above the downtrend line from the RM2.23 high. Prices also closed above both the 20-day and 50-day EMAs for the first time after its month-long consolidation. Buying interest may have resumed following the said breakout, supported by the higher low structure from the RM1.71 low

Both the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) have strengthened further, indicating that the upward momentum is picking up.

We think that aggressive traders may want to go long here or on weakness with a stop-loss set at RM1.83. On the upside, prices may push on to test the historical resistances at RM2.09 and RM2.19 next.

Source: CGS-CIMB Research - 23 Aug 2024