The stock has been in a sideways trend for the past 7-months. However, the bulls managed to lift prices to a new 21-month closing higher on Friday. The higher highs and higher lows structure from June last year keeps the uptrend intact. More upside beckons.

The Moving Average Convergence Divergence (MACD) has climbed to a new 7-month high while the Relative Strength Index (RSI) is also edging higher. Both indicators are constructive of the current short-term uptrend.

We think that aggressive traders may want to go long here or on weakness with a stop-loss set at RM0.285 (a tick below the 200-day EMA). On the upside, prices may continue to work their way higher to test the Fibonacci targets at RM0.355 (1.618), RM0.375 (2.0) and RM0.40 (2.618) next.

Source: CGS-CIMB Research - 26 Feb 2024