Technical Highlights

After touching its 52-week high in early-May, the stock experienced a mild correction before a recovery took place. This recovery moved in tandem with the growing trading interest, leading the stock to trend upward. During this period, a bullish uptrend wedge pattern was formed, indicating the stock was trending upward in a higher highs and higher lows pattern. At the last closing price of RM1.26 on Christmas eve, the stock was just on the verge of breaking through the pattern.

Momentum indicators are favourable and supportive of the pattern breakout. The RSI is picking up, signalling renewed buying interest. Meanwhile, the MACD displayed a golden cross, confirming the build-up of the stock's bullish momentum.

The range between RM1.24 to RM1.26 serves as a good entry opportunity. The first resistance level can be set at RM1.37. A successful breach above this resistance could pave the way for the stock to challenge the subsequent resistance at RM1.40. Conversely, if the stock consolidated towards and below RM1.18, this could signal the commencement of the consolidation phase.

Entry - RM1.24 - RM1.26

Stop Loss - RM1.10

Target Price - RM1.37 - RM1.40

Source: Mercury Securities Research - 26 Dec 2024