Technical Highlights

Technical Highlights The stock has been in a consolidation phase but is now showing promising signs of a bullish breakout. The recent price action has formed a bullish flag pattern, which typically indicates a continuation of the prior uptrend. Yesterday, the stock broke out of this pattern, moving decisively above its three key EMAs (20, 50, and 200), signalling strong buying interest. The breakout was accompanied by a significant increase in volume, further confirming the bullish sentiment. Momentum indicators are also turning positive. The MACD recently formed a golden cross, reinforcing the upward momentum, while the RSI stands at 55.2, indicating that the stock is gaining strength as it continues to rise. Given the bullish flag breakout, a slight pullback could offer an attractive entry point. If the stock breaks above the critical RM0.415 resistance level (52-week high), it could target the next new resistance at RM0.465. However, if the price dips below RM0.340, it may signal the start of a correction phase. Entry – RM-0.375 – RM0.380 Stop Loss – RM0.300 Target Price – RM0.415 – RM0.465

Source: Mercury Securities Research - 16 Aug 2024