Technical Highlights

A 2-month long triangle break-out is seen, supported by the spike in volume (3x higher than the 90-day average volume) and the formation of a large green candle, suggesting that strong buying interest resumed. The stock is currently trading at RM2.20 and is close to breaking through the crucial RM2.27 resistance (52-week high). We think breakout is underway, especially with the growing momentum (RSI is growing).

The MACD line is crossing above the signal line with the MACD pointing straight upward. This shows a strong bullish signal going forward. The 20-EMA pointing up also signifies a short-term bullish trend.

If it breaks through the crucial RM2.27 level, we think the stock could potentially test the next RM2.37 resistance. Conversely, a drop below RM2.10 support could signal the start of a correction phase.

Entry – RM-2.20 – RM2.22

Stop Loss – RM2.05

Target Price – RM2.27 – RM2.37

Source: Mercury Securities Research - 11 Jul 2024