Technical Highlights

The stock has been quietly consolidating in a triangle pattern for quite some time. After moving in a tight range, it is currently trading close to both the 20-day and 50- day EMAs, but remains below the 200-day EMA. The price action is getting compressed, hinting that a breakout could be right around the corner. Momentum indicators are looking green, though the MACD remains neutral, pointing slightly upward. On the bright side, the RSI has finally bounced back after a period of decline, signaling a potential shift in strength. If the momentum builds, it could further support the breakout case. Waiting for confirmation of the breakout, an ideal entry point will be between RM 0.070 and RM 0.075. Should the stock break above this range, it could quickly move towards RM 0.095, the first major resistance. It could challenge the next resistance at RM 0.125, if it holds steady above this level. However, if the breakout fails, we may see the stock retrace back to the RM 0.065 - RM 0.055 zone, potentially continuing its consolidation phase.

Entry – RM0.070 – RM0.075

Stop Loss – RM0.055

Target Price – RM0.095 – RM0.125

Source: Mercury Securities Research - 11 Sep 2024