Technical Highlights

The stock founds its bottom in late 2024 and has been moving upward since, hitting a new 52-week high at RM3.03. However, after that peak, it faced strong selling pressure and dropped sharply to RM1.69, aligning with its previous consolidation zone bottom. Yesterday, the stock touched the ceiling of the downtrend line with strong volume. If the buying momentum sustains, a breakout from this downtrend could occur, leading to a challenge of the three key EMAs.

Momentum indicators suggest improving conditions. After a steep decline, the RSI rebounded from oversold levels and now sits at 32. Meanwhile, the MACD has begun curving upward from its bottom, reflecting reduced selling pressure and the early stages of a possible trend reversal.

An ideal entry for this stock would be a range of between RM1.80 to RM1.85. The first resistance to watch is RM1.98, and if broken, the next target would be RM2.34. On the downside, if the stock trades below RM1.69, which serves as a second support, the downtrend could continue further.

Entry - RM1.80 - RM1.85

Stop Loss - RM1.69

Target Price - RM1.98 - RM2.34

Source: Mercury Securities Research - 5 Feb 2025