Technical Highlights

The stock has been moving upward and reached a peak of RM2.63 in December 2024. Since then, it has been in a downtrend but successfully broke out yesterday with strong volume. Adding to the positive outlook, the stock is now trading above the 20- and 200-day EMAs and will soon challenge the 50-day EMA. If it manages to break through this level, it could unlock further upside potential in the coming sessions.

Momentum indicators suggest strengthening bullish momentum. The RSI has rebounded from the oversold level last week and now sits at 50. Meanwhile, the MACD has also formed a golden cross recently and continues to head upwards.

An ideal entry for this stock would be between RM2.29 and RM2.34. The first key resistance to watch is RM2.37, and if the stock successfully clears this level, the next target will be RM2.50. If the stock breaks through both these resistance levels, it will aim for the 52-week high of RM2.63. On the downside, if the stock trades below RM2.18, it would indicate a breakdown from the key support zone, signalling a continuation of the downtrend.

Entry - RM2.29 - RM2.34

Stop Loss - RM2.18

Target Price - RM2.37 - RM2.50- RM2.63

Source: Mercury Securities Research - 7 Feb 2025