Technical Highlights

The stock seems to found support at the EMA 20 despite recent multiple swing. A positive wedge pattern was observed, and breakout may be underway, given the rise in trading volume (approximately 3.5x of the average 90-days volume) and the formation of large green candle at the closing yesterday. The recent swing closing at higher highs and higher lows sequence had built a footing for potential further upswing.

Positive momentum is buoyed by the recent golden cross as exhibited by both the EMA and MACD lines. Likewise, uptick of the RSI also further confirmed the short- term bullishness of the stock.

We think the stock is likely to put the resistance RM0.452 (52-week high) and RM0.535 to the test if it breaks through the positive wedge pattern. Conversely, consolidation happens if the share price falls below the RM0.405 support (a few ticks below the recent downswing).

Entry – RM-0.435 – RM0.440

Stop Loss – RM0.400

Target Price – RM0.452 – RM0.535

Source: Mercury Securities Research - 11 Jul 2024