Technical Highlights

The stock seemed to have found support at the 20-EMA after a recent upswing that closed at higher high and higher low. Yesterday, a 2-week-long pennant pattern break-out was seen, accompanied by the formation of a large green candle at closing with substantial trading volume (6.2 times more than its average 90-day trading volume), suggesting the resumption of strong buying interest.

Improving momentum and short-term bullishness are ascertained by both the upward pointing 20-EMA and RSI line.

With the pennant pattern breaking out with considerable volume, we think the share could test the resistance at RM0.350 (52-week high) first and subsequently at RM0.410. Conversely, consolidation starts if the share price dips below the RM0.310 support.

Entry – RM-0.330 – RM0.335

Stop Loss – RM0.305

Target Price – RM0.350 – RM0.375

Source: Mercury Securities Research - 26 Jul 2024