Technical Highlights

The stock has been trading within a range of RM3.71 to RM4.00 since beginning of the year until September. Recently, it broke out of this range and established an uptrend, reaching a peak of RM4.68. After a minor pullback, the stock remains above the uptrend line and just yesterday, it broke out of the pullback pattern. Currently, the stock is trading above all three key EMAs.

Momentum indicators are looking good. The RSI has rebounded from the neutral level of 50 and is currently at 58. While the MACD has been trending downward, the combination of declining selling pressure and increasing buying pressure suggests a potential shift.

An ideal entry point lies between RM4.41 and RM4.44. The first resistance is at RM4.52, with the second at the 52-week high of RM4.68. A breakout above this level could lead to further upside, as the previous high is RM6.74 in 2022. Conversely, a break below RM4.30 would begin a correction, as the uptrend line is invalidated.

Entry - RM4.41 - RM4.44

Stop Loss - RM4.30

Target Price - RM4.52 - RM4.68

Source: Mercury Securities Research - 27 Nov 2024