Technical Highlights

The stock seems to have found support on the 200-EMA after the recent swings. At closing yesterday, the stock price surged, forming a large green candle and gapping up to break through the pennant pattern with significant trading volume (14.2 times higher than its 90-day average) and increasing momentum (RSI>70). This indicates that more upside potential may be on the card.

Short-term bullishness is affirmed by the recent golden cross shown by the MACD, as well as both RSI and 20-EMA line pointing upward.

We think the stock could potentially test the RM0.455 resistance first and, subsequently, the RM0.585 resistance. Conversely, a dip below RM0.360 could signal the start of a correction phase.

Entry – RM-0.435 – RM0.440

Stop Loss – RM0.350

Target Price – RM0.455 – RM0.585

Source: Mercury Securities Research - 16 Jul 2024