Technical Highlights

The stock has been trending downward since June and entered a consolidation phase in September 2024. In this consolidation zone, a bear trap emerged in late October, followed by an impressive 48% surge. After this rally, the stock pulled back to its key support level, where it has shown signs of stabilisation with increased buying volume, rebounding off this support level. Currently, it is trading above the 20-day EMA and may soon test the 50-day EMA, though progress toward the 200-day EMA could take some time.

Momentum indicators are looking good. The RSI is trending upwards at around 53, while the MACD has also been moving higher, indicating a potential golden cross.

An ideal entry range is between RM0.82 and RM0.85, aligning with the recent bounce off key support. The first resistance level is the 50-day EMA at RM0.96; a successful breakthrough could lead the stock to test a second resistance at RM1.08. However, a drop below RM0.75 would indicate waning consolidation momentum and a further correction.

Entry - RM0.82 - RM0.85

Stop Loss - RM0.75

Target Price - RM0.96 - RM1.08

Source: Mercury Securities Research - 15 Nov 2024