Technical Highlights

The stock has convincingly broken out of its downtrend, surpassing both the internal and external trendlines with a strong green Marubozu candlestick. This is a clear sign of bullish momentum. On top of that, the stock is now trading above its three key EMAs. Despite a recent dip that briefly broke the 200-day EMA, the stock rebounded within just two days, showing its strength.

The momentum indicators are also showing strong signals. The RSI, which has been neutral for a while, has now pointed upward, suggesting that buying pressure is building up. Additionally, the MACD is also moving upward after a recent golden cross, which adds to the positive momentum.

With momentum on its side, the stock could test the first resistance at RM 0.65, and if that’s broken, the next target would be RM 0.69, close to its 52-week high. However, if it falls below the crucial support at RM 0.58, it could slip further to our stop loss level at RM 0.56.

Entry – RM0.60 – RM0.62

Stop Loss – RM0.56

Target Price – RM0.65 – RM0.69

Source: Mercury Securities Research - 3 Sep 2024