Technical Highlights

The stock has been trading downward since March 2024 but showed a strong rebound in early December. Recently, it broke through two key downtrend lines, as shown in the chart above. Following the breakout, the stock is now making a healthy pullback above the trendline and the previous key resistance zone. Additionally, the stock is now trading above its 20-day and 50-day EMAs, with the 200-day EMA emerging as the next challenge on the horizon.

Momentum indicators are looking good. The RSI is currently at 70 and continues to rise after rebounding from 65. At the same time, the MACD formed a golden cross in late November and is steadily climbing upward. The recent surge in trading volume highlights stronger buyer pressure, further reinforcing the positive momentum.

An ideal strategy for this stock is to consider an entry range between RM0.210 and RM0.230. The first resistance to watch is RM0.275, and a successful breakout could push the stock toward the second target of RM0.330. On the downside, if the stock slips below RM0.190, it could indicate the beginning of a correction phase.

Entry - RM0.210 - RM0.230

Stop Loss - RM0.190

Target Price - RM0.275 - RM0.330

Source: Mercury Securities Research - 19 Dec 2024