Technical Highlights

A 3-weeks-long flag break-out is seen, accompanied by a spike in volume (1.2x higher than the 90-day average volume), suggesting strong buying interest resumes. The stock is currently trading at RM4.00 (52-week high) which is close to breaking the crucial RM4.22 resistance level (based on difference of recent high and low price). We think breakout is underway, especially with the growing momentum (RSI is growing).

The stock’s MACD crossed above the signal line recently which shows a strong bullish signal going forward. The short-term bullishness is affirmative with the EMA 20 pointing upward.

If the share price surpasses the RM4.22 resistance, we think it is likely to test the next resistance level at RM4.44. Conversely, consolidation happens if the share price falls below the RM3.75 support.

Entry – RM-4.00 – RM4.10

Stop Loss – RM3.70

Target Price – RM4.22 – RM4.44

Source: Mercury Securities Research - 11 Jul 2024