Technical Highlights

A 2-months-long double bottom break-out is seen, accompanied by a spike in volume (9.0x higher than the 90-day average volume), suggesting reversal of the downtrend. The break-out is more affirmative, supported by the formation of large green candle at the closing. The stock is currently trading at RM0.265 which is close to breaking the crucial RM0.295 resistance level. We think breakout is underway, especially with the growing momentum (RSI is growing).

The stock’s MACD crossed above the signal line recently which shows a strong bullish signal going forward. The short-term bullishness is affirmative with the EMA 20 pointing upward.

If the share price break through the RM0.295 resistance, we think it is likely to test the next resistance level at RM0.33 (difference between the high and low of the double bottom) which is also the 52-week high. Conversely, consolidation happens if the share price falls below the RM0.23 support.

Entry – RM-0.265 – RM0.270

Stop Loss – RM0.225

Target Price – RM0.295 – RM0.330

Source: Mercury Securities Research - 11 Jul 2024