Technical Highlights

The stock appeared to have entered a sideways trend from late May to early August. Following this period, it dipped into a consolidation phase as the rebounding strength weakened. However, yesterday marked a comeback as a surge in buying interest— evidenced by the last closing trading volume being 2.1 times its average 90-day total—led the stock to spike and break through the wedge pattern. This breakout has led to the stock trading above all of its EMA lines, signaling a more positive movement ahead.

Momentum indicators are aligning well with the breakout. The RSI is trending upward, reflecting increased buying pressure. Similarly, the MACD has started to pick up gradually, suggesting that momentum may be building further.

For an ideal entry point, a slight pullback to the RM0.330 to RM0.350 range presents a good opportunity. The first resistance level to watch is RM0.355. If the stock can break through this level, the next target would be its 52-week high at RM0.400. Conversely, if the stock drops below RM0.325, it would indicate a false breakout of the wedge pattern

Entry – RM0.330 – RM0.350

Stop Loss – RM0.300

Target Price – RM0.355 – RM0.400

Source: Mercury Research - 10 Oct 2024