Technical Highlights

The stock has recently formed a bullish W-shaped pattern and is currently trading just below a key resistance zone at RM0.585. Supported by strong alignment across all three key EMAs, the stock is trading above these critical levels, indicating a high potential to break through the neckline and completing the W-shaped breakout.

Momentum indicators are also supportive, as the RSI stands at 61 and continues to trend upward. The MACD line is also moving higher, reflecting strengthening momentum. Additionally, buying pressure is evident as trading volume has been steadily increasing.

An ideal entry point for this stock lies between RM0.570 and RM0.580. If the stock successfully breaks out from the W-shaped pattern, the first resistance level will be RM0.615, followed by a secondary target at RM0.655. On the downside, a drop below RM0.535 would invalidate the bullish setup and could enter a corrective phase. This setup offers a risk-to-reward ratio of 2.4.

Entry - RM0.570 - RM0.580

Stop Loss - RM0.535

Target Price - RM0.615 - RM0.655

Source: Mercury Securities Research - 29 Nov 2024