Key Things to note (overnight recap)

The pullback from the 52-week high found support at the bottom end of the long-term uptrend channel. After the recent base-building period (since the start of the year), the stock appears ready to climb further following the strong close above 50-day EMA yesterday. Yesterday’s strong move also confirmed that a new higher high and higher low is now in place, signalling prices are potentially at the start of a new uptrend.

The Moving Average Convergence Divergence (MACD) is still rising while the Relative Strength Index (RSI) has hooked sharply higher. Both indicators suggests that the bulls have the upper hand right now.

We think that aggressive traders may want to go long here or on weakness with a stop-loss set at RM0.345 (a tick below the year-to-date low). On the upside, prices may continue to work their way higher to test the historical resistances at RM0.42, RM0.46 and RM0.485 next.

Source: CGS-CIMB Research - 29 Feb 2024