Technical Highlights

The stock hit a bottom in September 2024 and has been on an uptrend since, reaching a new 52-week high of RM4.11 in December. However, after that peak, it started moving downward, breaking out from the previous uptrend. Despite this, the stock formed a triangle pattern, and just yesterday, it successfully broke out of this pattern with strong volume-the highest since November 2024. Adding to the positive sentiment, the stock is still trading above the 200-day EMA, though it will soon face resistance at the 20-day and 50-day EMAs.

Momentum indicators are also showing strength. The RSI is at 46 and rebounding sharply after two months of neutral momentum, indicating buyers are stepping in. Meanwhile, the MACD is on the verge of forming a golden cross as selling pressure continues to decline.

For an ideal entry, the stock looks attractive between RM3.48 and RM3.52. The first resistance is at RM3.61, and if broken, the next target is RM3.78. A successful breakout above both would put the stock on track to challenge the 52-week high near RM3.97. On the downside, if the stock falls below RM3.28 (2nd support level), this would indicate a false breakout and the stock could continue to trend downwards.

Entry - RM3.48 - RM3.52

Stop Loss - RM3.28

Target Price - RM3.61 - RM3.78 - RM3.97

Source: Mercury Securities Research - 4 Feb 2025