Technical Highlights

The stock has been in a steady uptrend since reaching its bottom in November 2024. It is currently facing resistance at RM0.88, a key level to watch. On a positive note, the stock has shown four consecutive days of strong candlesticks. As highlighted in the figure above, the stock continues to trade within an uptrend line, supported by its position above all three key EMAs (20-, 50-, and 200-day).

Momentum indicators are looking good. The RSI is currently at 66 and continues to move upward. Meanwhile, the MACD is on the verge of forming a golden cross and buying momentum has been steadily increasing since November, adding confidence to the stock's uptrend.

An ideal entry point for this stock would be in the range of RM0.85 to RM0.87. The first resistance to watch is RM0.88, and a successful breakout above this level could lead to a rally toward RM0.97. If both levels are surpassed, the stock could challenge its 52-week high of RM1.04. On the downside, a drop below RM0.79 would signal a breakdown from the uptrend line and failure to test the resistance zone, indicating the potential for a downward move.

Entry - RM0.85 - RM0.87

Stop Loss - RM0.79

Target Price - RM0.88 - RM0.97 - RM1.04

Source: Mercury Securities Research - 22 Jan 2025