Technical Highlights

The stock entered a consolidation phase after reaching its 52-week high in late-June 2024. With the stock consolidating into a narrow range, this signals the potential for a trend reversal. The signal becomes affirmative when the stock breaks out of the falling wedge pattern and trades above all its EMA lines. . Momentum indicators are supportive of the pattern breakout. The RSI is currently trending sharply upward, approaching its overbought level, signalling the resumption of strong buying interest. Additionally, the MACD displayed a golden cross recently, reinforcing the stock's short-term bullish sentiment.

The ideal entry point would be between RM0.400 to RM0.420. The first resistance is set at RM0.455, and if the stock breaks this level, it could challenge RM0.485, the next resistance level. On the downside, if the stock falls below RM0.375, it will indicate a false breakout, likely triggering a correction toward RM0.305, the lower support level.

Entry - RM0.400 - RM0.420

Stop Loss - RM0.345

Target Price - RM0.455 - RM0.485

Source: Mercury Securities Research - 5 Dec 2024