Technical Highlights

The stock was in mild consolidation mode after reaching its 52-week high in early August. However, in mid-October, the consolidation paused as renewed trading momentum shifted the stock into a sideways pattern. Last Friday, the stock closed higher with the initiation of a triangle pattern breakout driven by the surge in trading interest. These positive signals could position the stock for further upside movement ahead.

Momentum indicators reinforce this bullish outlook. The RSI is accelerating, signalling the accumulation of buying momentum. Similarly, the upward movement in the MACD further ascertains the build-up of strong positive momentum in the near term.

An ideal entry point lies in the range between RM0.295 and RM0.305. The stock could test the immediate resistance at RM0.330 if trading momentum persists. A breakout above this level, supported by sustained momentum, could open the path toward the next resistance at RM0.370. On the other hand, a consolidation phase is likely to be triggered if the stock descent below its recent support level at RM0.275.

Entry - RM0.295 - RM0.305

Stop Loss - RM0.250

Target Price - RM0.330 - RM0.370

Source: Mercury Securities Research - 25 Nov 2024