Technical Highlights

The stock has been in a steady downtrend since its peak in July, forming a bullish falling wedge pattern along the way. Yesterday, it finally broke out of this pattern with its highest trading volume since August, signaling renewed interest. It is now trading above all three key EMAs, which further supports a positive outlook.

Momentum indicators are also aligning with this bullish sentiment. The RSI stands at 62, comfortably below the overbought zone and continuing to rise. The MACD, which formed a golden cross earlier this month, is still moving upward.

For a more cautious strategy, waiting for a pullback may offer a better entry point. The ideal buy range is around RM0.160, with the first resistance at RM0.180. Should it break through this level, the next target would be RM0.195. However, if the stock dips below RM0.15, it’s important to keep an eye on it, as a fall to RM0.135 may indicate the beginning of a consolidation phase.

Entry – RM – RM0.160

Stop Loss – RM0.135

Target Price – RM0.180 – RM0.195

Source: Mercury Securities Research - 23 Oct 2024