Technical Highlights

After reaching its 52-week high in early July, the significant decline in buying interest pushed the stock into consolidation mode, leading to a total decline of 34.7%. Upon hitting its trough, trading interest regained momentum and drove the stock higher. Yesterday, sustained strong buying interest pushed the stock to close further higher and broke through the descending triangle pattern. We think this pattern breakout would provide a foundation for the stock to continue its uptrend movement ahead.

Momentum indicators are strengthening and in favour of the positive outlook. The RSI continued its upward momentum, signalling sustained buying interest. Similarly, the recent exhibition of golden cross in the MACD further ascertains the short-term bullishness of the stock.

An ideal entry price range lies between the RM1.18 and RM1.20 range. The first resistance to watch is at RM1.25. A potential breakout from this point could position the stock to challenge the subsequent resistance at RM1.32. Conversely, the stock could enter into consolidation mode again if the stock fails to sustain its upward momentum and stay above RM1.15, a point that serves as the crucial support level.

Entry - RM1.18 - RM1.20

Stop Loss - RM1.10

Target Price - RM1.25 - RM1.32

Source: Mercury Securities Research - 11 Dec 2024