Technical Highlights

The share price of TT Vision has been experiencing consolidation for the past 2 months. Yesterday, the share price surged and closed the trading day with a large green candle. The green candle broke through an approximately 9-week-long channel pattern with growing momentum (as shown by rising RSI), indicating that more upside potential may be on the horizon.

The upward-pointing MACD line attempting to cross above the signal line signifies that momentum is improving. Likewise, the upward-pointing 20-EMA line confirms the short-term bullishness.

With TT Vision’s share price breaking out of the channel pattern with momentum, we think the stock could potentially test the resistance at RM1.19 first and subsequently at RM1.30 (52-week high). On the other hand, a fall below RM1.04 could mark the commencement of a correction phase.

Entry – RM-1.11 – RM1.12

Stop Loss – RM1.00

Target Price – RM1.19 – RM1.30

Source: Mercury Securities Research - 26 Jul 2024