Technical Highlights

This stock has been in a consolidation zone for nearly three years, forming a triangle pattern during this period. After four failed attempts to break through the trendline, it finally managed to do so yesterday. The breakout has resulted in the stock trading above all three key EMAs, signalling strong upward momentum.

Momentum indicators also support this bullish movement. The RSI is currently sitting at 70 and continues to climb, while the MACD formed a golden cross earlier this month, further reinforcing the positive outlook. Trading volume has notably surged, reaching the second-highest level this year, with only April experiencing higher volume. This indicates increased market interest.

The ideal entry point lies between RM0.160 and RM0.170. If the stock tests and surpasses its first resistance at RM0.175, it has the potential to rally toward its previous high of RM0.215. However, if the price falls below RM0.145, this would indicate a false breakout, likely pushing the stock back into its consolidation zone.

Entry – RM0.160 – RM0.165

Stop Loss – RM0.145

Target Price – RM0.175 – RM0.215

Source: Mercury Securities Research - 22 Oct 2024