Technical Highlights

Yesterday, this stock showed strong signs of a bullish "W" pattern, with the highest buying volume since May 2024. It's also forming a triangle pattern that's close to breaking out. The stock has stayed above its long-term uptrend line, which adds to the overall positive outlook. Currently, it's trading above the 200-day EMA and is close to the 20-day and 50-day EMAs, indicating that another surge in buying volume could confirm a breakout.

Momentum indicators are also flashing green. The MACD just completed a golden cross, suggesting that the selling pressure is weakening. Additionally, the RSI is climbing back from oversold conditions, which indicates that buyers are starting to take control.

Looking ahead, if the price breaks out of the "W" pattern and triangle, it could lead to another upward move. The first resistance level to watch is RM1.19, with potential to reach the 52-week high at RM1.26. However, if the price drops below RM0.90, it could break the long-term uptrend, signalling a possible shift in the trend.

Entry – RM0.98 – RM1.02

Stop Loss – RM0.90

Target Price – RM1.19 – RM1.27

Source: Mercury Securities Research - 20 Aug 2024