Technical Highlights

The stock seemed to have found support at its 20-EMA line during the recent swing. The vigorous momentum experienced by the stock after breaking out of the pennant pattern 3 trading sessions ago had sent its share price to the new 52-week high. Despite the stock experiencing consolidation from its 52-week high, we see the consolidation as temporary, given that the stock still trades above all of its EMA lines. With the stock rebounding and reversing all the losses from the recent consolidation, we believe that there may be more upside potential on the horizon.

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

With the stock sustaining above the pattern break-out, we think the share could retest the 52-week high at RM1.31 resistance and subsequently at 1.40 resistance. Conversely, consolidation starts if the share price dips below the RM1.15 support.

Entry – RM-1.28 – RM1.29

Stop Loss – RM1.13

Target Price – RM1.31 – RM1.40

Source: Mercury Securities Research - 7 Aug 2024