Technical Highlights

The stock has been oscillating between RM0.41 to RM0.56 and recently formed a triangle pattern. Yesterday, it broke out of this pattern with a solid 9.3% gain, signalling that momentum might finally be shifting upward. Currently, the stock is trading above its main support at the 200-day EMA, while challenging both the 20-day and 50-day EMAs, which could further confirm a bullish outlook if sustained.

Momentum indicators are looking good. The RSI has climbed to 50, showing signs of renewed buying interest after a two-month neutral stretch. Additionally, the MACD also shows a pattern of rebound as selling pressure has gradually eased.

An ideal strategy would be to enter between RM0.455 and RM0.465, capitalising on a potential pullback before a further move upward. The first key resistance is at RM0.490, with a breakthrough potentially paving the way toward RM0.560, near the 52-week high. On the downside, a drop below RM0.430 may signal a correction, likely testing the final support around RM0.405.

Entry – RM0.455 – RM0.465

Stop Loss – RM0.430

Target Price – RM0.490 – RM0.560

Source: Mercury Securities Research - 5 Nov 2024