The stock surged and broke out of its 3.5-month flag pattern yesterday with a long white candle. The breakout was supported by a higher trading volume. With the strong close above both the 20-day and 50-day EMAs, prices are likely to continue its upward move in the short-term following the said breakout.

Both the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) have hooked higher, indicating that the bullish momentum is picking up.

We think that aggressive traders may want to go long here or on weakness with a stop-loss set at RM0.505 (a tick below yesterday’s swing low). On the upside, prices may push on to test the historical resistances at RM0.655 and RM0.70 next.

Source: CGS-CIMB Research - 10 Sep 2024