Technical Highlights

The stock has been forming an interesting triangle pattern and recently broke out three days ago. What's catching attention is that the breakout has been supported by a surge in buying volume, which has remained consistently higher than the two-month average. Prior to this, the stock has been on a steady uptrend since its IPO, hit an all- time high, and now looks ready to continue its climb. The breakout, along with the stock trading above all major EMAs, suggests that bullish momentum seems to be regaining strength.". Momentum is clearly on the rise. The RSI has moved up to 60, reflecting growing buying pressure, while the MACD is gradually turning bullish after months of neutral movement. Both indicators are pointing to more strength ahead, and the current trend suggests the stock might just be gearing up for its next rally. For an entry point, the sweet spot lies between RM0.595 and RM0.615. The first resistance to watch is RM0.66, and if that breaks, RM0.71 is within reach, which is close to 52-week high. On the downside, RM0.565 serves as first support, followed by RM0.550. A slip below that could mean a correction towards the RM0.480 level.

Entry – RM0.595 – RM0.615

Stop Loss – RM0.550

Target Price – RM0.660 – RM0.710

Source: Mercury Securities Research - 24 Sep 2024