Technical Highlights

A 2-month-long rectangle break-out is seen, accompanied by a spike in volume (3.5x higher than the 90-day average volume) and the formation of a large green candle on closing, suggesting strong buying interest resumes. The stock is currently trading at RM1.07 which is close in breaking the crucial RM1.165 resistance level (52-week high). 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 surpasses the RM1.165 resistance, we think it is likely to test the next resistance level at RM1.215. Conversely, consolidation happens if the share price falls below the RM0.955 support.

Entry – RM-1.07 – RM1.10

Stop Loss – RM0.950

Target Price – RM1.165 – RM1.215

Source: Mercury Securities Research - 11 Jul 2024