Technical Highlights

After reaching its 52-week high, the stock slipped into consolidation mode as multiple failed attempts of recovery were observed. The recovery of the stock was weak as each recovery attempts were accompanied by a lower peak. Recently, the stock showed some comeback buoyant by the return of strong buying interest. Last Friday, this strengthening buying momentum pushed the stock higher, bringing it to the edge of breaking out from the triangle pattern. With favorable trading momentum, we see a breakout as likely.

Momentum indicators are supportive of the pattern breakout. The RSI is rebounding strongly from recent muted level, indicating a resurgence of buying interest. Similarly, the recent golden cross in the MACD further reinforces the stock's bullish outlook.

For an ideal entry point, it can be seen in the range between RM0.235 to RM0.245. If the stock initiates a pattern breakout, it could gain strength to test its first resistance at RM0.260. A successful breakout here could position the stock to challenge the next resistance at RM0.295. On the flipside, consolidation could happen if the stock dips below its recent support level at RM0.230.

Entry - RM0.235 - RM0.245

Stop Loss - RM0.200

Target Price - RM0.260 - RM0.295

Source: Mercury Securities Research - 11 Nov 2024