Technical Highlights

The stock seems to have found support at the 20-EMA line during the recent swing. Yesterday, the share price picked up, forming a large green candle at closing and was on the verge of breaking through the 5-month long ascending channel pattern. With the growing momentum (RSI is growing and pointing upward), we think the break-out is underway, signifying more upside may be on the card.

Upward pointing of both the MACD and 20-EMA line indicates short-term bullishness going forward.

If the share price breaks through the ascending channel pattern, we think the stock could potentially put the resistance to test at RM2.59 first and subsequently at RM2.99 (52-week high). Conversely, a dip below RM2.00 (a few points below the recent downswing) could mark the start of a correction phase.

Entry – RM-2.44 – RM2.46

Stop Loss – RM1.90

Target Price – RM2.59 – RM2.99

Source: Mercury Securities Research - 23 Jul 2024