Technical Highlights

The stock has been on a strong upward trend since mid-2022, recovering quickly even after a sharp pullback in previous weeks, indicating strong buying interest. Recently, it formed a bull flag pattern and broke out of it yesterday. Additionally, the stock is trading above all three main EMAs, further confirming the bullish sentiment.

The MACD completed a golden cross last Friday, indicating strengthening upward momentum. The RSI is also rising upwards, suggesting the stock still has room to grow in the current trend without being overbought.

A key factor to watch in the coming days will be whether buying volume increases, as this would confirm the breakout from the bull flag pattern and reinforce the continuation of the uptrend. The first resistance level to monitor is at RM0.90. If the stock manages to break above this level, it could push towards near 52-week high at RM0.95. However, if the price falls below RM0.83, this would invalidate the macro uptrend and could signal a potential correction phase.

Entry – RM0.87 – RM0.89

Stop Loss – RM0.83

Target Price – RM0.90 – RM0.95

Source: Mercury Securities Research - 21 Aug 2024