Technical Highlights

A 1-months-long flag break-out is seen, accompanied by a spike in volume (6.6x higher than the 90-day average volume), suggesting strong buying interest continues. The stock is currently trading at RM0.215 (52-weeks high) which is close to breaking the crucial RM0.225 resistance level. We think breakout is underway, especially with the growing momentum (RSI>70).

The short-term bullishness is affirmative with the stock’s EMA 20 pointing upward and its MACD line has been hovering above signal line for a while.

If the share price break through the RM0.225 resistance, we think it is likely to test the next resistance level at RM0.295 (all-time high). Conversely, consolidation happens if the share price falls below the RM0.20 support.

Entry – RM-0.215 – RM0.220

Stop Loss – RM0.195

Target Price – RM0.230 – RM0.295

Source: Mercury Securities Research - 11 Jul 2024