Technical Highlights

After hitting its 52-week high, the stock entered a consolidation phase, though each subsequent correction has been milder. Yesterday, a surge in buying strength pushed the stock higher, with trading volume closing at 2.8 times its 90-day average. With the stock last closing at RM1.00, it is now on the verge of breaking through the crucial RM1.01 resistance level and the pennant pattern. A breakout here could signal that further bullish movement is likely on the horizon.

Momentum indicators continue to support the stock's upward movement. The RSI spiked up towards overbought territory, signalling the return of strong buying interest. Meanwhile, the recent golden cross displayed in the MACD confirms that the positive momentum is building up.

An ideal entry point can be observed in the range between RM0.980 to RM1.00. If the stock can break through the nearby resistance level at RM1.01, this could push the stock towards challenging its next target resistance at RM1.09. Conversely, if the stock drops below its recent support level of RM0.985, it might indicate the start of a consolidation phase.

Entry – RM0.980 – RM1.00

Stop Loss – RM0.960

Target Price – RM1.01 – RM1.09

Source: Mercury Securities Research - 17 Oct 2024