The breakout of its uptrend channel resistance a couple of weeks ago shows that the buying pressure accelerated and further upside may follow. The pullback from the recent 15-month high of RM0.25 found support from the said uptrend channel following yesterday bullish engulfing pattern. We reckon that the stock is ready to pop higher once more.

Both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) are in positive territory, supporting an upbeat momentum.

We think that aggressive traders may want to go long here or on weakness with a stop-loss set at RM0.19 (a tick below yesterday’s low). On the upside, prices may push on to test the recent high of RM0.25 next. The following Fibonacci targets are at RM0.27 (1.382x) and RM0.285 (1.618x) next.

Source: CGS-CIMB Research - 19 Jul 2024