Technical Highlights

The stock has been trading along an uptrend line, and while it has seen a downward move since July, it has been forming a falling wedge pattern, which is typically a bullish sign. Last week, the stock broke out of this pattern and pulled back above the wedge, resuming its upward movement. Yesterday, the stock broke through a key resistance level at RM1.15 with a strong bullish green candle. It is now trading above all three key EMAs, which further reinforces the positive outlook.

Momentum indicators are also showing strength. The RSI is at 61 and still trending upwards. Meanwhile, the MACD formed a golden cross earlier this month and continues to rise. Trading volume has also surged, marking the highest levels since September.

For entry, a good range to consider would be between RM1.15 to RM1.17. The first resistance to watch is RM1.24, and if it breaks through, the stock could challenge its 52-week high at RM1.38. On the downside, if the stock falls below RM1.05, it could indicate a false breakout and invalidate the upward trend, potentially leading to the start of a correction.

Entry – RM1.15 – RM1.17

Stop Loss – RM1.05

Target Price – RM1.24 – RM1.38

Source: Mercury Securities Research - 24 Oct 2024