Technical Highlights

After reaching its 52-week high in early May, the stock entered a consolidation phase as multiple market corrections pushed it significantly lower. Recently, the stock began to rebound gradually from its low as buying interest resumed. However, weak buying strength prevented the stock from breaking out of consolidation, forming a triangle pattern as it traded within the range of RM2.72 to RM3.06. Yesterday, a spike in buying interest drove the stock higher, triggering a breakout from the triangle pattern. This breakout signals a potential bullish rebound in the stock's movement ahead.

Momentum indicators are showing strength and supportive of pattern breakout. The RSI is picking up, showing buying interest is accumulating. Similarly, MACD displayed a golden cross, suggesting the formation of a bullish trend movement in the stock.

A good entry opportunity can be observed in the range between RM2.72 to RM2.77. The first resistance level to watch would be at RM2.81. If the stock successfully breaches above and beyond this point, this would form a stage for the stock to test its subsequent resistance at RM2.96. Conversely, if the stock falls toward its recent support at RM2.65, the consolidation phase could resume.

Entry - RM2.72 - RM2.77

Stop Loss - RM2.55

Target Price - RM2.81 - RM2.96

Source: Mercury Securities Research - 13 Nov 2024