Technical Highlights

A 10-month-long double bottom break-out is seen, backed by growing momentum (RSI is growing) and breaking through the 10-month primary resistance at RM0.375 (the black line shown). This suggests reversal of primary downtrend and the start of primary uptrend.

The MACD line has recently crossed above the signal line, which shows a strong bullish signal going forward. The 20-EMA pointing up also signifies a short-term bullish trend.

Based on the difference of RM0.045 between the high and low price of the top and bottom, we think the stock could potentially test the resistance at RM0.430 and RM0.465 (52-week high) respectively. Conversely, a drop below RM0.355 support could signal the start of a correction phase.

Entry – RM-0.385 – RM0.395

Stop Loss – RM0.350

Target Price – RM0.43 – RM0.465

Source: Mercury Securities Research - 11 Jul 2024