Mercury Securities Research

Cahya Mata Sarawak (2852) - Double-bottom Break-out Underway?

MercurySec
Publish date: Fri, 12 Jul 2024, 09:15 AM
An official blog in i3investor to publish research reports provided by Mercury Securities Research team.

All materials published here are prepared by Mercury Securities Sdn. Bhd.

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Technical Highlights

After the recent multiple swings, the stock price appears to have been hovering above all the EMA lines for a while. Yesterday, the stock surged and formed a large green candle at the close. It is on the verge of breaking through the neckline of the 40- month-long double-bottom pattern. We think a break-out may be underway, underpinned by the increasing momentum (growing RSI).

The stock’s short-term bullishness is ascertained, with both the RSI and SMA 20 lines pointing up straight.

If the stock break through the neckline at RM1.45, we think the stock could potentially test the resistance at RM1.950 first and subsequently at RM2.450 (determined by difference of RM0.50 between high and low of double-bottom pattern). Conversely, consolidation happens if the share price dips below the RM1.310 support (a few ticks below the recent downswing).

Entry – RM-1.440 – RM1.500

Stop Loss – RM1.210

Target Price – RM1.950 – RM2.450

Source: Mercury Securities Research - 12 Jul 2024

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1 person likes this. Showing 1 of 1 comments

speakup

still holding mine from rm1. LOL!

2024-07-13 10:00

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