Technical Highlights

The stock was in the uptrend movement from early Mar to late July. Upon reaching its peak, the stock entered a market correction phase as trading momentum cooled off. However, renewed trading interest reignited the stock’s recovery, which appeared strong, supported by a pattern of higher highs and higher lows. The sustained positive momentum also triggered a triangle pattern breakout yesterday, further supporting the potential for more upside movement in the stock.

Momentum indicators are strengthening. The RSI is picking up gradually, indicating the gradual accumulation of the stock’s buying interest. Meanwhile, the recent display of the golden cross in the MACD further reinforces the build-up of strong momentum in the stock.

A strategic entry point can be observed in the range between RM0.84 and RM0.86. If the trading momentum is sustained, this could push the stock to challenge its first target resistance at RM0.885. Any breach beyond this point would warrant the stock to challenge its subsequent resistance at RM0.940. Conversely, a false pattern breakout could happen if the stock dips below its RM0.770 crucial support level.

Entry – RM0.840 – RM0.860

Stop Loss – RM0.730

Target Price – RM0.885 – RM0.940

Source: Mercury Research - 21 Nov 2024