Technical Highlights

The stock has been forming a triangle pattern, and a bullish squeeze was successfully completed yesterday. What stands out is the strong volume accompanying it, signalling solid buying interest. While the stock is still trading below the three key EMAs, we need to see if today’s candlestick can close above yesterday's high. This would further reinforce the bullish sentiment, especially given the positive momentum indicators. The MACD recently formed a golden cross and volume has also surged, reaching its highest level since August. The RSI, which has rebounded from oversold territory, is now moving upward, adding to the stock’s bullish potential. The current level at RM 0.210-0.215 offers a reasonable entry point. If the stock can break through the RM 0.225 resistance, it could gradually head towards RM 0.260, though this may take some time, given that this area served as a consolidation zone previously. Should the stock manage to stay above RM 0.260, the next potential target would be RM 0.310, aligning with the previous price action. However, if this is a false breakout, we may see the stock retrace back to the RM 0.190 level.

Entry – RM0.210 – RM0.215

Stop Loss – RM0.190

Target Price – RM0.225 – RM0.260

Source: Mercury Securities Research - 12 Sep 2024