The stock appears to have found support above the RM2.40 level after its consolidation from the 52-week high. Yesterday’s bullish engulfing pattern suggests that prices may be ready to resume on its uptrend. Coupled with a higher trading volume, the improving EMAs also support more upside ahead.

The Moving Average Convergence Divergence (MACD) stayed on its upward trajectory while the Relative Strength Index (RSI) has hooked up again, possibly signalling the bulls are still 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 RM2.35. On the upside, prices may push on to test the resistances at RM2.70 and RM2.90 next.

Source: CGS-CIMB Research - 10 Sep 2024