Technical Highlights

Recent swing has sent the stock price to hover above the SMA 20 line. Last Friday, the stock surged, gapping up with the formation of a large green candle at closing. The gap-up broke through an approximately 1-month long triangle pattern with momentum (RSI>70) and considerable trading volume, signifying more upside potential may be on the card.

The recent golden cross shown by the MACD, coupled with the RSI and SMA 20 line pointing upward, could be a sign of short-term bullishness.

Based on the difference of RM0.185 derived from the high and low of the triangle pattern, we think the stock could potentially test the RM1.195 resistance and, subsequently, the RM1.380 resistance. Conversely, a dip below RM1.010 could signal the start of a correction phase.

Entry – RM-1.15 – RM1.16

Stop Loss – RM0.910

Target Price – RM1.195 – RM1.380

Source: Mercury Securities Research - 15 Jul 2024