Technical Highlights

After reaching its 52-week high in mid-Jun, the stock fell into a consolidation phase. During this period, the stock showed some signs of recovery but failed to sustain momentum as trading strength remained muted. Recently, however, the stock regained momentum and began to trend upward. This strong momentum continued to push the stock higher and triggered a triangle pattern breakout. Following the pattern breakout, the stock maintained its upward movement and finally traded above all its EMA lines.

Momentum indicators are showing strength. The RSI regained strength and trended sharply upward towards the overbought territory, indicating trading interest is accumulating. Additionally, the stock's bullish momentum is ascertained by the recent exhibition of golden cross in the MACD.

Waiting pullback to the range between RM0.23 and RM0.24 would offer a good entry opportunity. The first resistance lies on RM0.250, and a breakout above this level could see the stock rally toward RM0.31. Conversely, a drop below RM0.210 could signal a continuation of the downtrend, with the potential to test new 52-week lows at RM0.180.

Entry - RM0.230 - RM0.240

Stop Loss - RM0.190

Target Price - RM0.250 - RM0.310

Source: Mercury Securities Research - 24 Dec 2024