Technical Highlights

The stock has been in an uptrend since 2024, reaching a 52-week high at RM1.39. After hitting this level, it experienced a healthy pullback and found strong support at RM1.07 before rebounding. If the stock manages to break out from its current downtrend, it could confirm a bull flag pattern, signalling further upside potential. Additionally, the stock remains above all three key EMAs, supporting the ongoing bullish structure.

Momentum indicators are looking good. The RSI is currently at 50 and continues to move upward. Meanwhile, the MACD is on the verge of forming a golden cross, indicating that selling pressure is fading and momentum is shifting in favour of buyers.

An ideal entry for this stock would be between RM1.14 and RM1.17. The first target is set at RM1.25, and if the stock breaks through this level, it could head toward the 52-week high at RM1.39. On the downside, if the stock trades below RM1.05, it would indicate a failure to hold the key support zone, potentially leading to a continued downtrend. This setup presents an attractive risk-reward ratio of 3.

Entry - RM1.14 - RM1.17

Stop Loss - RM1.05

Target Price - RM1.25 - RM1.39

Source: Mercury Securities Research - 5 Feb 2025