Technical Highlights

The stock has been in a steady uptrend since early August and is now breaking out above its uptrend line. Yesterday marked a significant move as the stock closed above the key resistance level of RM 0.34 for the first time since IPO, which signals a bullish shift in sentiment. It is also worth noting that the stock is currently trading above the three key EMAs, further reinforcing the strength of the current uptrend. Momentum indicators is green. The MACD has been confidently trending upward for some time and what stands out most is the continued increase in buying volume over the past two months, a sign of growing market interest. The RSI is currently at 70 and still moving higher. Immediate upside could see the stock heading toward its 52-week high at RM 0.355. The next resistance level is at RM 0.380, based on a 1:1 box ratio, which is reasonable for that target. On the downside, if the stock pulls back to RM 0.325, it could signal the start of a correction and potentially move back into a deeper consolidation zone.

Entry – RM0.340 – RM0.345

Stop Loss – RM0.325

Target Price – RM0.355 – RM0.380

Source: Mercury Securities Research - 12 Sep 2024