Technical Highlights

Yesterday, the stock successfully broke out of an ascending triangle after four previous failed attempts, achieving an impressive 8.3% gain. This breakout was accompanied by the highest buying volume since July 2023, underscoring strong market interest. With this move, the stock is now trading above all three key EMAs.

Momentum indicators support this positive outlook even further. The RSI has reached 68 and continues to rise. Meanwhile, the MACD has shifted into an upward trend after 50 days of neutral activity, reinforcing the bullish sentiment.

A strategic entry point could be to wait for a pullback in the RM0.50 to RM0.52 range. The first resistance level to watch is RM0.59, with the potential to rise to RM0.63, which was the high in October 2022, if the stock breaks through this level. On the downside, RM0.47 is a critical support level; a drop below this point could signal further declines, potentially testing RM0.45.

Entry – RM0.50 – RM0.52

Stop Loss – RM0.45

Target Price – RM0.59 – RM0.63

Source: Mercury Securities Research - 7 Nov 2024