Technical Highlights

After reaching its 52-week high, the stock made several rebound attempts, each at a lower peak, signalling the start of a consolidation phase. It continued to trend downward towards its 52-week low before recovery was observed as buying interest returned. Since then, the recovery has strengthened, with the stock forming higher highs and higher lows. This upward movement recently broke through the neckline of a double-bottom pattern, indicating the beginning of a new upward trend. Yesterday, the stock closed higher with an open-low-close high candle and is approaching the key resistance level at RM2.25, further affirming the building of positive momentum.

Momentum indicators are favourable. The RSI is trending upward as buying interest gains traction, while short-term bullishness is evident with the MACD pointing upward and the stock trading above all its EMA lines.

Waiting for a pull-back to the range between RM2.15 and RM2.21 would provide a good entry opportunity. If the stock continues to trend upward and breaks through the crucial first resistance level at RM2.25, this could push the stock toward challenging its next resistance level at RM2.41. Conversely, a dip below the RM2.11 support level might signal the start of a consolidation phase.

Entry – RM2.15 – RM2.21

Stop Loss – RM2.01

Target Price – RM2.25 – RM2.41

Source: Mercury Securities Research - 30 Oct 2024