Technical Highlights

A 4-month-long rectangle break-out is seen, backed by growing momentum (RSI >70), suggesting that strong buying interest continues. The stock is currently trading at RM0.600 and is close to breaking through the crucial RM0.637 resistance (52-week high).

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.

If it breaks through the crucial RM0.637 level, we think the stock could potentially test the next RM0.667 resistance. Conversely, a drop below RM0.57 support could signal the start of a correction phase.

Entry – RM-0.600 – RM0.610

Stop Loss – RM0.565

Target Price – RM0.637 – RM0.667

Source: Mercury Securities Research - 11 Jul 2024