The recent upticks have sent Eversendai Corporation’s share price to trade above its 20-EMA line. Yesterday, the share price surged, forming a large green candle at the closing and breaking through the approximately 6-week-long channel pattern with growing momentum (RSI is picking up). We think the upswing potential may be on the cards with these positive indicators.
The share's momentum is tied to the recent golden cross indicated by the MACD. Additionally, the upward-pointing 20-EMA line confirms its short-term bullishness.
With the channel pattern breaking out and positive momentum, we think the share could test the RM0.670 resistance and subsequent RM0.745 resistance (52-week high). Conversely, consolidation starts if the share price dips below the RM0.520 support.
Entry – RM-0.640 – RM0.645
Stop Loss – RM0.515
Target Price – RM0.670 – RM0.745
Source: Mercury Securities Research - 24 Jul 2024
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