Technical Highlights

The stock has been on an upward trend since early 2024, reaching its peak in March before entering a downward phase. Starting in June, the stock began forming a rounded bottom, which resembles a U-shape and can be seen as a potential turning point. Just yesterday, the stock broke out from a key resistance level at RM1.19 with strong volume, marking the highest volume since March. Notably, it is now trading above all three key EMAs.

Momentum indicators are also looking favorable. The RSI is at 67 and is still trending upward. Additionally, the MACD also crossed into a golden cross last week, further supporting the bullish outlook.

The ideal entry point would be to wait for a pullback to the RM1.20 to RM1.22 range. The first resistance is at RM1.29, and a breakout beyond this could see the stock rise towards RM1.37. On the downside, if the stock dips below RM1.07, it would indicate a break below the three key EMAs, potentially signalling the start of a correction.

Entry – RM1.20 – RM1.22

Stop Loss – RM1.07

Target Price – RM1.29 – RM1.37

Source: Mercury Securities Research - 24 Oct 2024