Technical Highlights

The stock has exhibited notable volatility, characterized by multiple wide corrections following each successive high. Recently, renewed buying interest has propelled the stock into an upward trajectory, forming an ascending channel pattern. The stock continues to trend higher within this range, signaling strengthening positive momentum. With sustained buying activity, we anticipate a potential breakout from the ascending channel, reinforcing the stock's bullish outlook.

Momentum indicators are supportive of the potential channel pattern breakout. The RSI continue to trend upward gradually, signalling the buying interest is accumulating Similarly, the recent exhibition of golden cross in the MACD ascertain the bullish outlook of the stock.

An ideal entry point can be identified at RM0.380 to RM0.390. The first resistance to watch is RM0.395. This point serves as both the crucial resistance and channel pattern trigger levels. If the stock breaks above this point, the stock could aim for the next target at RM0.429, its 52-week high. Conversely, if the stock moves in the opposite direction toward its RM 0.360 support level, this could mean the commencement of a consolidation phase.

Entry - RM0.380 - RM0.429

Stop Loss - RM0.355

Target Price - RM0.395 - RM0.429

Source: Mercury Securities Research - 16 Jan 2025