Technical Highlights

The stock has been consolidating within a triangle pattern following a recent downtrend, indicate that a critical turning point may be near. Buying volume has steadily increased in recent sessions, and the stock is approaching a key test of its 50-day, 100-day, and 200-day EMAs. A breakout above the triangle and these EMAs could pave the way for significant upside potential.

Momentum indicators are showing encouraging signs. The MACD, which had been flat over the past month, is beginning to trend upward. Additionally, the RSI has climbed to 47 and continues to rise, reinforcing the case for a potential breakout.

For this setup, an ideal entry range is between RM1.23 and RM1.25. The first resistance lies at RM1.32, and a successful breakout could see the stock rally toward RM1.48, a key resistance level. On the downside, a break below RM1.17 would indicate a bearish reversal and lead to a sharper correction.

Entry - RM1.23 - RM1.25

Stop Loss - RM1.17

Target Price - RM1.32 - RM1.48

Source: Mercury Securities Research - 17 Dec 2024