Technical Highlights

The stock price appears to have found support at the EMA 50 after a recent swing. Yesterday, the stock surged and formed a Marubozu candle at the close. There may be more upward movement in the future, especially with the breakout of the flag pattern, supported by increasing momentum (growing RSI) and significant trading volume (approximately 2.3x higher than its 90-day average volume).

The recent golden cross, as demonstrated by the EMA line crossing above the signal line, signifies positive momentum going forward. Similarly, uptick of the RSI also further ascertains the short-term bullishness of the stock.

We think the stock could potentially test the resistance at RM0.585 first and subsequently at RM0.660. Conversely, consolidation happens if the share price dips below the RM0.485 support (a few ticks below the recent downswing).

Entry – RM-0.535 – RM0.540

Stop Loss – RM0.475

Target Price – RM0.585 – RM0.660

Source: Mercury Securities Research - 11 Jul 2024