Technical Highlights

The stock has been on an upward trajectory since early 2024, reaching a 52-week high before pulling back to form a macro W pattern. During this consolidation phase, it traded between a key resistance and support level. Last week, the stock broke out of the W pattern, and it’s now trading above all three key EMAs, reinforcing both short- and long-term bullish momentum.

Momentum indicators are flashing green. The RSI currently stands at 70, a strong level that remains favourable as long as there are no sharp pullbacks. Additionally, the MACD is showing strength, having formed a golden cross in early October and continuing its upward path, signalling rising buying pressure and sustained momentum.

The ideal entry range is between RM1.18 and RM1.21. Once the stock tests its first resistance at RM1.26, it could push toward its 52-week high of RM1.33 if the bullish momentum holds. On the downside, a drop below RM1.13 would invalidate the W pattern and start triggering a correction phase.

Entry – RM1.18 – RM1.21

Stop Loss – RM1.13

Target Price – RM1.26 – RM1.33

Source: Mercury Securities Research - 21 Oct 2024