Technical Highlights

Since early 2024, the stock has been in a downtrend until this month. Last week, the stock broke out of its downward trend, and just yesterday, it continued its upward momentum, pushing through a strong resistance level at RM0.340. After struggling for three months to stay below this key level, the stock is now trading firmly above it. Additionally, the stock is poised to challenge all three key EMAs soon, which could confirm further strength if surpassed.

The RSI is currently at 47, showing improving momentum as it continues to rise after rebounding from five months of neutral movement. More importantly, the MACD has recently formed a golden cross on a weekly candle basis, a strong bullish signal that often indicates sustained upward potential.

An ideal strategy for this stock would be to wait for a slight pullback, with an entry range between RM0.340 and RM0.350. The first resistance to monitor is RM0.380, with a secondary target at RM0.425 if the stock breaks higher. On the downside, a move below RM0.315 may indicate a return to the prior downtrend.

Entry - RM0.340 - RM0.350

Stop Loss - RM0.315

Target Price - RM0.380 - RM0.425

Source: Mercury Securities Research - 18 Dec 2024