Technical Highlights

The stock surged, causing its stock price to remain above all the EMA lines for the past 2 weeks. An ascending wedge pattern is formed, supported by sizeable trading volume and strengthened momentum (sustained RSI>70 for the past 2 weeks), which signifies continued strong buying interest. The formation of a Marubozu candle at close yesterday, together with recent price swing that close at higher highs and higher lows, indicate further uptick may be on the card.

Short-term bullishness is further affirmative with strengthening momentum, as indicated by both the MACD and 20 EMA line pointing up straight.

Based on the difference of RM0.10 between the high and low of the ascending wedge, we think the stock could potentially test the resistance at RM1.380 first and subsequently at RM1.480. Conversely, a fall below RM1.150 could signal the commencement of a correction phase.

Entry – RM-1.280 – RM1.300

Stop Loss – RM1.050

Target Price – RM1.380 – RM1.480

Source: Mercury Securities Research - 11 Jul 2024