Technical Highlights

The stock has experienced multiple upward movements over the past six months, trending toward its 52-week high. However, it recently began to lose momentum and entered into a consolidation phase. This trend shifted when the stock started a gradual climb from its lowest point in late August 2024. Yesterday, a surge in buying interest propelled the stock significantly higher, breaking out of both the pennant pattern and the critical RM1.62 resistance level. This breakout has also resulted in the stock trading above all its EMA lines, signalling the start of an uptrend movement.

Momentum indicators are positive. The RSI is gradually trending upward toward the overbought territory, implying that strong buying interest resumes. Meanwhile, the uptick of the MACD line also confirmed the short-term bullishness of the stock.

In terms of the ideal entry point, a favourable range would be between RM1.60 and RM1.63. The first resistance level to watch is at RM1.69. Should the stock continue its upward trajectory and break through this level, the next resistance to challenge will be RM1.81. Conversely, if the stock dips below its recent support level at RM1.57, it could trigger a return to the consolidation phase.

Entry – RM1.60 – RM1.63

Stop Loss – RM1.47

Target Price – RM1.69 – RM1.81

Source: Mercury Securities Research - 10 Oct 2024