Technical Highlights

The stock is on the verge of breaking through its 31-month long double bottom pattern. Higher trading volume have brought up the price closed above the EMA 20 significantly. The recent swing closing at higher highs and higher lows sequence form a foundation for potential further uptick. We think the break-out is underway, supported by rising momentum (RSI >70).

The short-term bullishness is affirmative with the stock’s EMA 20 pointing upward and its MACD line has been hovering above signal line for a while.

If the share price break through the double bottom at RM0.420 resistance, we think it is likely to test the next resistance level at RM0.455 and RM0.540 respectively. Conversely, consolidation happens if the share price falls below the RM0.350 support (a few ticks below the recent downswing).

Entry – RM-0.405 – RM0.410

Stop Loss – RM0.345

Target Price – RM0.42 – RM0.455

Source: Mercury Securities Research - 11 Jul 2024