Technical Highlights

The stock has been showing significant movement since November 2024, breaking out from a prolonged consolidation zone and peaking at RM1.31 in January 2025. After the peak, the stock faced a downward trend but rebounded strongly from RM0.915. Yesterday, the stock confirmed a breakout from the downtrend line with a gain of over 10%. It is now trading above its 50-day and 200-day EMAs, but is currently testing the 20-day EMA. Additionally, the stock is currently hovering within a previous key support zone, which may cause some sideway before any upward movement resumes.

Momentum indicators are showing a positive outlook. The RSI has bounced back from oversold levels and is now at 50, still trending upwards. The MACD is turning positive, with a noticeable decrease in selling pressure.

An ideal entry point would be a pullback to the range of RM1.10 to RM1.13. The first resistance level is RM1.20, with a potential move toward the 52-week high of RM1.31 if momentum sustains. However, if the stock falls below RM1.04, it would indicate weakened buying momentum and could lead to a drop toward the previous consolidation zone near RM0.91.

Entry - RM1.10 - RM1.13

Stop Loss - RM1.04

Target Price - RM1.20 - RM1.31

Source: Mercury Securities Research - 22 Jan 2025