Technical Highlights

After peaking in mid-October 2024, the stock entered a consolidation phase, gradually trending downward and forming a falling triangle pattern. Last Friday, the stock broke out of the triangle pattern, supported by the surge in buying interest. Post-breakout, the stock is now trading above all its key EMA lines, signalling a potential trend reversal and the beginning of a new upward trajectory.

Momentum indicators are looking favourable. The RSI continues to trend upward, signalling sustained level of buying interest. Meanwhile, the MACD exhibited a golden cross recently, further confirming the build-up of positive momentum in the near term.

The ideal entry point would be to wait for a pullback to the RM0.800 to RM0.810 range. The first resistance is at RM0.845, and a breakout beyond this level could see the stock rise towards RM0.900. On the downside, if the stock dips below RM0.755, it could mean a false pattern breakout and potentially consolidate towards its recent support level of RM0.700.

Entry - RM0.800 - RM0.810

Stop Loss - RM0.735

Target Price - RM0.845 - RM0.900

Source: Mercury Securities Research - 28 Jan 2025