Technical Highlights

Momentum for the stock has been increasing, especially with the recent formation of multiple green candles which sent the stock to trade above its 20-EMA line with significant trading volume. Yesterday, the surge in share price resulted in a large green candle at closing, breaking past a channel pattern that lasted around 2.5 months with growing momentum (RSI is increasing). There may be more upside potential given these positive signals.

The MACD recently exhibited a golden cross, which denotes strong momentum going forward. Additionally, the upward-pointing 20-EMA line confirms its short-term bullishness.

Given the pattern break-out with momentum, we think the share could put the immediate resistance of RM0.435 and the subsequent resistance RM0.475 to the test. Conversely, consolidation starts if the share price dips below the RM0.385 support.

Entry – RM-0.425 – RM0.430

Stop Loss – RM0.375

Target Price – RM0.435 – RM0.475

Source: Mercury Securities Research - 31 Jul 2024