Technical Highlights

From early May to late July, the stock was in a downtrend movement as trading momentum declined sharply. Then, the stock rebounded from its trough before entering into a neutral trend movement, which led to the formation of a triangle pattern. Yesterday, the spike in trading momentum caused the stock to gap up and breach the triangle pattern. With the initiation of a pattern breakout, this could signal a potential trend reversal in the stock.

Momentum indicators are supportive of the trend reversal. The RSI is spiking up from oversold territory, indicating the commencement of new buying waves. Additionally, the strong buying interest pushed the MACD upward and initiated a golden cross yesterday, further confirming the stock's bullish momentum.

A strategic entry point lies within the range of RM0.280 to RM0.290. The immediate resistance to monitor is at RM0.305, a key level within close reach. Should the bullish momentum persist, the stock could aim for its next resistance at RM0.340. On the downside, a loss of momentum and a dip below the RM0.265 support level could signal a potential false trend reversal

Entry - RM0.280 - RM0.290

Stop Loss - RM0.245

Target Price - RM0.305 - RM0.340

Source: Mercury Securities Research - 22 Nov 2024