Technical Highlights

Since the beginning of 2024, the stock has been consolidating for seven months until July. It then surged by over 100% in August, establishing a strong uptrend. Recently, it has continued the upward momentum, but saw a pullback in September, forming a bullish flag pattern. Last week, the stock broke out of the bullish flag but is currently facing resistance at the 50-day and 20-day EMAs. It's still staying above the 200-day EMA, supporting a long-term bullish outlook.

Momentum indicators are showing signs of improvement. The RSI is currently at 47, and after a month of neutral movement, it's trending upward. Although the MACD is moving in a neutral manner, it still hasn’t shown any signs of turning downward, indicating stability.

The entry point would be between RM1.50 to RM1.60. If the bull flag breakout holds, it could target the first resistance at RM1.73. A successful break above that could push it toward the second resistance at RM1.96. On the flip side, strong support lies at RM1.46, a key level that acted as resistance during the seven-month consolidation in June, which has now flipped to support.

Entry – RM1.50 – RM1.60

Stop Loss – RM1.38

Target Price – RM1.73 – RM1.96

Source: Mercury Research - 7 Oct 2024