Technical Highlights

Last week’s surge had sent Malton’s share price to tick above all of its EMA lines. Yesterday, a large green candle was formed at closing with a sizeable trading volume. The share price is on the verge of breaking through the 5-week long flag pattern at RM0.525 (52-weeks high). We think the break-out is underway, driven by the growing momentum (RSI>70).

Short-term bullishness is affirmative with an upward-pointing 20-EMA line and the recent golden cross exhibited by the MACD.

If the share price broke through the flag pattern, we think the stock could put the RM0.545 resistance and the subsequent RM0.590 resistance to the test. Conversely, consolidation happens if the share price dips below the RM0.440 support.

Entry – RM-0.520 – RM0.525

Stop Loss – RM0.435

Target Price – RM0.545 – RM0.590

Source: Mercury Securities Research - 18 Jul 2024