Technical Highlights

The stock has been in a downtrend movement since early June 2024. During these periods, the stock initiated multiple attempts to breach the downtrend but was unsuccessful each time. The recovery signal was only reignited when the spike in trading volume yesterday (9.2x more than its average 90-day total volume) caused the stock to hook up substantially and break through the triangle pattern. Supported by these bullish signals, the stock is likely to trend upward further, signalling the commencement of a trend reversal.

Momentum indicators are showing strength. The RSI is trending upward sharply, indicating the build-up of solid trading interest. Similarly, the upward-pointing MACD is reflecting the strengthening of the stock's momentum.

The ideal entry point can be observed in between RM0.200 to RM0.220. The first resistance to watch would be at RM0.240. If the trading momentum is sustained, this could fuel the stock rally towards its secondary resistance at RM0.280. A successful breakout beyond this point could lead to a swift move toward the subsequent resistance at RM0.310. Conversely, if the stock descends towards RM0.180, this could mark a false trend reversal and consolidation could follow.

Entry - RM0.200 - RM0.220

Stop Loss - RM0.160

Target Price - RM0.240 - RM0.280 - RM0.310

Source: Mercury Securities Research - 4 Dec 2024