Technical Highlights

From February to August, the stock moved in a positive uptrend, driven by strong buying interest. After reaching its 52-week high, it faced a sharp decline before recovering in early September. This recovery appears sustainable, backed by consistent buying interest. With the recent pattern breakout and the stock trading above all its key EMA lines, we think it signals a trend reversal, marking the beginning of a renewed upward trend.

Momentum indicators are showing favourable conditions. The RSI has rebounded and is approaching overbought territory, signaling that buying interest continues to build. Similarly, the MACD is trending upward, indicating that strong trading momentum remains intact.

An ideal entry range lies between RM0.895 and RM0.915. If supportive signals persist, the stock could test its resistance at RM0.930, close to last Friday’s closing price of RM0.915. With RM0.850 as a critical support level, any drop below this point may signal the start of a consolidation phase.

Entry – RM0.895 – RM0.915

Stop Loss – RM0.800

Target Price – RM0.930 – RM0.980

Source: Mercury Securities Research - 28 Oct 2024