Technical Highlights

The share price seemed to have found support at 20-EMA after the recent multiple swings. The formation of Marubozu candle on 17 Jul 2024 provided the momentum for the share price to surge yesterday, breaking through the 6-week long uptrend channel pattern with significant trading volume (12.2 times more than its average 90- day volume). We think more upside may be in the offing especially with momentum trending upwards (RSI>70).

Golden cross indicated by the MACD line crossing above the signal line recently, along with the upward pointing 20-EMA line, confirms short-term bullishness moving forward.

With the share price broken through the trend pattern, we think the share could put the RM0.410 resistance (new all-time high) and the subsequent RM0.490 (next new all-time high) resistance to the test (derived based on the difference of RM0.08 between the high and low of the channel pattern). Conversely, consolidation happens if the share price dips below the RM0.305 support.

Entry – RM-0.360 – RM0.365

Stop Loss – RM0.300

Target Price – RM0.410 – RM0.490

Source: Mercury Securities Research - 19 Jul 2024