Technical Highlights

After reaching its 52-week high in late May, the stock entered a significant consolidation phase as buying interest waned, driving it into a bearish trend. Yesterday, the rebound in buying interest pushed the stock to close higher and initiated a triangle pattern breakout. This breakout, coupled with the stock trading above its EMA 20 line, suggests a potential shift toward sustained positive momentum and an upward trend ahead.

Momentum indicators are showing strength in favour of trend reversal. The RSI is showing a clear uptick after a prolonged subdued phase, highlighting the resurgence of buying interest. Meanwhile, the exhibition of a golden cross in the MACD yesterday signals the stock is entering a positive trajectory.

Looking at the price range between RM0.275 and RM0.285 could yield an attractive entry opportunity. The first resistance level is at RM0.300, and if the stock successfully breaks through, it could climb towards the RM0.345 level. On the flip side, the stock could dip into a correction phase if the stock falls below RM0.260, its recent support level.

Entry - RM0.275 - RM0.285

Stop Loss - RM0.240

Target Price - RM0.300 - RM0.345

Source: Mercury Securities Research - 4 Dec 2024