Technical Highlights

In early 2024, the stock began an uptrend, reaching a peak at RM0.425 before reversing into a downtrend. During this decline, the stock formed a falling wedge pattern, which it successfully broke out from just last week. Following the breakout, the stock made a pullback earlier this week, but it bounced back strongly yesterday with a 5% gain. The stock is now trading above all the three key EMAs.

Momentum indicators are showing continued strength. The RSI, which bounced from 52, has climbed to 60, reflecting growing bullish momentum. Similarly, the MACD is steadily moving upward and trading volume has surged to its highest level since August.

An ideal entry for this stock lies in the range of RM0.310 to RM0.320. The first resistance is at RM0.340, and a successful breakout could lead to RM0.370. Beyond this, the stock has the potential to approach near its 52-week high of RM0.405. On the downside, if the stock falls below RM0.280, it may enter a correction, with the main support zone at RM0.210.

Entry - RM0.310 - RM0.320

Stop Loss - RM0.280

Target Price - RM0.340 - RM0.370 - RM0.405

Source: Mercury Securities Research - 28 Nov 2024