Technical Highlights

The stock has broken out of a triangle pattern after consolidating for a while, and it did so with strength, as reflected by the higher trading volume. This breakout is also forming a classic bullish W pattern, which is a good sign that the stock could be heading higher. Additionally, the stock is trading comfortably above its 20, 50, and 100-day EMAs, indicating that these levels are now acting as a solid base of support.

Indicators are also signalling positive momentum. The RSI has rebounded, indicating growing buying interest, and the MACD is further strengthening the bullish case with a recent golden cross.

We see the RM0.580 - RM0.610 level as good entry points for the stock. If the stock break through the first resistance at RM0.640, the next target would be RM0.700, which is close to its 52-week high. However, if it drops below the key support at RM 0.575, it could fall to RM 0.545, signaling a potential correction.

Entry – RM0.580 – RM0.610

Stop Loss – RM0.545

Target Price – RM0.640 – RM0.700

Source: Mercury Securities Research - 3 Sep 2024