A 2-week-long flag break-out is seen, accompanied by the formation of a large green candle, suggesting that strong buying interest continues. The stock is currently trading at RM1.22 which is at the 52-week high. We think the uptick is likely to continue, especially with the growing momentum (RSI>70).
The stock’s MACD has been hovering above the zero line for a while, signifying a bullish trend in the short term. This bullish trend is further supported by the recent upward cross of the MACD over the signal line.
If the share price surpasses the RM1.22 resistance, we think it is likely to test the next resistance level at RM1.32. Conversely, consolidation happens if the share price falls below the RM1.10 support.
Entry – RM-1.22 – RM1.24
Stop Loss – RM1.05
Target Price – RM1.25 – RM1.32
Source: Mercury Securities Research - 11 Jul 2024
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