Technical Highlights

The stock has been in an uptrend since early October, consistently forming higher highs and higher lows, which reinforces the strength of the trend. Recently, an ascending wedge pattern developed, and yesterday's breakout above this pattern confirms continued bullish momentum. This breakout sets a strong technical foundation for the stock to challenge its all-time high.

Momentum indicators are favourable. The RSI continue its uptrend movement toward overbought territory, reinforcing the strength of buying interest. Meanwhile, both the upward-pointing MACD and short-term 20-day EMA line confirm the stock's short- term bullish outlook.

For an ideal entry range, it lies on RM0.875-RM0.890. The first resistance to watch is at RM0.925, the stock's 52-week high. A successful breach beyond this point could fetch the stock to test its new all-time high at RM0.970. However, a failure to sustain the breakout, particularly a drop below the key support at RM0.840, may trigger a correction toward the lower support at RM0.740.

Entry - RM0.875 - RM0.890

Stop Loss - RM0.820

Target Price - RM0.925 - RM0.970

Source: Mercury Securities Research - 3 Jan 2025