Technical Highlights

Recently, the stock seems to have found support at the 20-day EMA following the multiple swings. The stock surged and formed a large green candle at close last Friday. More upside may be in the offing especially with the green candle gapped up, breaking through the 2-month triangle and backed by the surge in trading volume (20.9 times higher than the average 90-day volume).

MACD shows momentum is strengthening with the MACD line crossing above the signal line recently. Likewise, both RSI and the 20 EMA line pointing up straight also further confirmed the upbeat momentum and short-term bullishness of the stock.

We think the stock could potentially test the resistance at RM0.555 and RM0.625 which are derived based on the difference of RM0.07 of high and low of the triangle. Conversely, a drop below RM0.415 support could signal the start of a correction phase.

Entry – RM-0.485 – RM0.495

Stop Loss – RM0.405

Target Price – RM0.555 – RM0.625

Source: Mercury Securities Research - 11 Jul 2024