Technical Highlights

The stock underwent a consolidation phase from early July to early September, with the 200-day EMA serving as its key support level. After touching this support, the stock began a gradual rebound, forming an ascending movement pattern. Yesterday, a significant spike in trading momentum pushed the stock sharply higher, breaking out of the ascending triangle pattern. These bullish technical signals suggest the potential for further upward movement in the stock

Momentum indicators are favourable. The RSI continued to climb, indicating the build- up of buying interest. Similarly, the short-term bullishness of the stock is further ascertained by the upward-pointing MACD line.

A good entry opportunity lies in the range between RM0.98 and RM1.00. The first target resistance for the stock to test would be at RM1.03. If the sustained momentum pushes the stock higher and breaks above this point, the RM1.14 level would be the next resistance target to challenge. On the flipside, the stock could potentially consolidate towards RM0.850 if it dips below its recent support level at RM0.945.

Entry - RM0.980 - RM1.00

Stop Loss - RM0.900

Target Price - RM1.03 - RM1.14

Source: Mercury Securities Research - 21 Nov 2024