Technical Highlights

The stock has been forming a falling wedge pattern, which recently broke out with high volume, evidenced by the highest trading volume recorded this month. The breakout suggests renewed interest and bullish sentiment in the stock. Currently, it’s trading above the 20 and 50-day EMAs but remains below the 200-day EMA.

The momentum indicators also have a bullish outlook. The MACD has completed a golden cross last week and the RSI currently stands at 62, which is above neutral and trending upwards. This stock has been gaining strength with room for further upwards before reaching overbought conditions.

Should the stock continue to experience strong buying volume in the coming days, this could support the ongoing uptrend, potentially reaching the first resistance at RM0.265. A successful breakout above this level could push the stock towards RM0.310, a key resistance point. However, a conservative stop-loss can be set just below the recent low at RM0.175, providing protection against a possible false breakout.

Entry – RM0.205 – RM0.225

Stop Loss – RM0.175

Target Price – RM0.265 – RM0.310

Source: Mercury Securities Research - 22 Aug 2024