Technical Highlights

The stock has been in an uptrend since early 2024, reaching a peak in July before entering a gradual downtrend. During this period, it formed a falling wedge pattern, which it broke out of yesterday with the highest buying volume seen since August. Currently, the stock is trading above the 20-day and 200-day EMAs and is approaching the 50-day EMA, a key level to monitor in the coming sessions.

Momentum indicators are showing strength. The RSI has climbed to 53, moving upward after a bounce in early November. Meanwhile, the MACD is also on an upward trend, with buying volume gradually increasing, further reinforcing the bullish outlook.

For an entry point, a range between RM0.57 and RM0.59 would be ideal. The first resistance level to challenge is RM0.62, with the potential for a move to RM0.69 if it breaks through. Should the bullish momentum hold, the stock may aim for another resistance at RM0.79, the starting point of its overall downtrend. On the flip side, a drop below RM0.52 could signal the onset of a major correction.

Entry – RM0.57 – RM0.59

Stop Loss – RM0.52

Target Price – RM0.62 – RM0.69 – RM0.79

Source: Mercury Securities Research - 7 Nov 2024