Technical Highlights

The stock has been on an upward trend since early 2024, reaching its peak in July. Afterwards, it began trading within a triangle pattern, consolidating its position. Earlier this week, the stock broke out of this pattern, and yesterday it continued to follow the bullish momentum, moving upwards with the highest volume recorded since August. Currently, the stock is trading above all three key EMAs, which adds to the positive outlook.

Momentum indicators are showing strength. The RSI is at 67 and still rising, indicating solid momentum. Similarly, the MACD continues its upward movement.

For potential entry, waiting for a slight pullback to the RM0.915 to RM0.935 range could offer an ideal opportunity. The first resistance level is at RM0.985, and if the stock breaks through, it has the potential to challenge its 52-week high at RM1.070. On the downside, if the stock falls below RM0.840, it could signal a false breakout of the triangle, with a potential decline towards RM0.705.

Entry – RM0.915 – RM0.935

Stop Loss – RM0.840

Target Price – RM0.985 – RM1.070

Source: Mercury Securities Research - 25 Oct 2024