Technical Highlights

The stock found solid support at RM0.215 during its recent consolidation phase following a 52-week high. With renewed buying interest, it managed to break through the pennant pattern, marking a key technical breakout. Post-breakout, the sustained buying momentum had kept the stock trading above all its EMA lines. Notably, the formation of a Marabozu candle last Friday reinforces the continuation of its upward trend. Momentum indicators are also indicating a bullish outlook. The RSI is sharply trending upwards, nearing overbought territory, which suggests persistent buying pressure. Meanwhile, the upward-pointing MACD and the 20-day EMA line confirm the short- term bullishness of the stock. An ideal entry point could be within the RM0.240 to RM0.250 range. With current momentum, the stock looks poised to test its first resistance at RM0.280, its 52-week high. A successful breach of this level may strengthen the stock’s upward movement, with the next resistance target set at RM0.330. However, a drop below the RM0.235 support level could suggest a return to the consolidation phase.

Entry – RM0.240 – RM0.250

Stop Loss – RM0.215

Target Price – RM0.280 – RM0.330

Source: Mercury Securities Research - 14 Oct 2024