Technical Highlights

The stock has finally broken out of its two-year consolidation phase, marked by a clear triangle pattern. Last Friday, the breakout came with the highest trading volume since April 2023. It is now trading above both the 20 and 50-day EMAs, though remains below the 200-day EMA. This breakout, after such a prolonged consolidation, is a promising sign of a potential trend reversal.

Momentum indicators are also showing positive signs. The MACD has shifted upward after several months of neutral movement. RSI continues to rise and has yet to hit the overbought zone. Overall, momentum appears to support further upward movement in the coming trading sessions.

A good entry point lies between RM0.180 and RM0.185, with the first resistance around RM0.195. If the stock continues its climb, it may challenge the next resistance at RM0.210, which could mark a new 52-week high. Given the two-year consolidation phase, there’s potential for the stock to push further once it breaches RM0.210. However, if it falls below RM0.160, it could signal the beginning of a correction phase.

Entry – RM0.180 – RM0.185

Stop Loss – RM0.160

Target Price – RM0.195 – RM0.209

Source: Mercury Securities Research - 17 Sep 2024