Technical Highlights

This stock has recently broken out of a triangle, with the breakout occurring last Friday. It's currently trading above the 20-day EMA and there was a noticeable spike in trading volume, the highest seen this month. Since mid-July, the stock has been working to establish higher lows and higher highs, a positive sign that could indicate further upward movement.

Momentum indicators are also turning positive, with the RSI pointing upward. Additionally, the MACD is also moving upward, with the potential for a golden cross formation if this trend continues.

Given the recent breakout, If the price successfully breaks through the first resistance level at RM 0.94, it could next challenge the 200-day EMA at RM 1.10. However, if the price dips below 0.785, this may signal the start of a correction phase.

Entry – RM0.860 – RM0.890

Stop Loss – RM0.785

Target Price – RM0.940 – RM1.100

Source: Mercury Securities Research - 19 Aug 2024