Technical Highlights

The stock has been following a steady uptrend since end-May, maintaining support above the trendline. Last Thursday, it saw a breakout but soon pulled back. Yesterday, the pullback was confirmed with a strong breakout from a bullish wedge, backed by solid buying volume. After a 4.5% gain in yesterday’s session, the stock is now trading above all three key EMAs, indicating solid upward momentum and increased buying interest. Momentum indicators are looking strong. The RSI currently sits at 59 and is steadily climbing. Additionally, the MACD also formed a golden cross yesterday. Both indicators reinforce the stock’s potential for continued gains in the near term. The ideal range is between RM 2.05-2.09, a zone with high buying and selling activity, making it a reliable area for entry. The first key resistance is the 52-week high at RM 2.18. If the stock breaks and holds above this level, the next target will be RM 2.36. On the downside, if the stock falls below RM 1.94, it could head toward RM 1.80 for the next major support, signalling a potential shift toward a downtrend.

Entry – RM2.05 – RM2.09

Stop Loss – RM1.94

Target Price – RM2.18 – RM2.36

Source: Mercury Securities Research - 26 Sep 2024