Technical Highlights

The stock surged and formed a large green candle at close yesterday. The surge in the trading volume (12.5 times higher than the average 90-days volume) has sent the stock price to close above all its EMA. With the green candle gapped up and substantial trading volume, we think breaking through the 6-month double bottom may be on the cards.

MACD shows momentum is strengthening with the MACD line crossing above the signal line recently. Similarly, short-term bullishness is further affirmed by the RSI hooking up and pending confirmation on the golden cross by the EMA lines.

We think the stock could potentially test the resistance at RM0.396 first and subsequently at RM0.401 (52-week high). Conversely, a dip below RM0.350 support could signal the commencement of a correction phase.

Entry – RM-0.375 – RM0.380

Stop Loss – RM0.345

Target Price – RM0.396 – RM0.401

Source: Mercury Securities Research - 11 Jul 2024