Technical Highlights

Technical Highlights The stock has been trading along a strong macro uptrend line since September 2022, consistently rebounding off this support over six times. Yesterday, it once again tested the trendline and saw a sharp recovery, closing 3.6% higher. Adding to the bullish outlook, the stock is currently trading within a bullish wedge pattern and is approaching a breakout point. With prices just touching the 20-day EMA and nearing both the 50-day and 200-day EMAs, there’s clear room for upward momentum.

Momentum indicators are aligning positively as well. The RSI, currently at 45, is showing signs of strengthening as it trends upward. Meanwhile, the MACD has recently formed a golden cross and is continuing its upward trajectory.

For potential entry, a buying range between RM0.560 and RM0.570 appears attractive. The immediate resistance to watch is RM 0.585, and a successful breakout above this level could propel the stock towards RM0.640, aligning it above all three key EMAs. Beyond RM 0.640, gains may slow down as this zone, which previously served as strong support, has now turned into a resistance. On the downside, if the stock falls below RM0.530, it would signify a breakdown of the macro uptrend and could signal the start of a deeper correction.

Entry – RM0.560 – RM0.570

Stop Loss – RM0.530

Target Price – RM0.585 – RM0.640

Source: Mercury Securities Research - 27 Sep 2024