Technical Highlights

The stock has been on a downward trend, but recently it broke out from the downward trendline with a surge in buying volume. Despite the recent drop, the stock successfully bounced back and is currently managing a pullback to RM0.405. This breakout from the downward trendline and subsequent pullback could be a bullish signal, although the stock is still trading below the three key EMAs.

Momentum indicators are also turning positive. The RSI is pointing upwards, especially after the stock successfully rebounded from oversold levels. Additionally, the MACD has recently formed a golden cross and continues to move upwards day by day, further supporting the bullish outlook.

Should the stock continues to experience strong buying volume in the coming days, it could reinforce the ongoing breakout, potentially pushing the price towards the first resistance level at RM0.480. A successful breakout above this level could drive the stock even higher, potentially reaching RM0.52. On the downside, a stop-loss can be placed below the recent low at RM0.375 to protect against a possible false breakout.

Entry – RM0.425 – RM0.445

Stop Loss – RM0.375

Target Price – RM0.480 – RM0.520

Source: Mercury Research - 26 Aug 2024