Technical Highlights

Technical Highlights Recently, the stock had been experiencing mild upward movement after consolidating from its 52-week high in early May. Last Friday, the trading momentum of the share spurred and led the stock to close significantly upward with a large green candle. Additionally, the large green candle also broke through the 7-month-long pennant pattern with considerable trading volume. With these positive signals, we believe there is potential for further upward movement in the stock.

Strong momentum indication is supported by the recent golden cross in the MACD, while the short-term bullish trend for the stock is confirmed by the upward-trending 50-EMA line.

With the stock's trading momentum back, we expect the share to test its RM0.335 resistance first followed by the next resistance level at RM0.400. Inversely, a stop- loss can be placed below the recent low at RM0.285.

Entry – RM0.290 – RM0.310

Stop Loss – RM0.250

Target Price – RM0.335 – RM0.400

Source: Mercury Securities Research - 2 Sep 2024