Last Friday, the surge in share price sent the stock to trade above its 20-EMA line. At the closing, a large green candle was formed, breaking past a pennant pattern that lasted approximately 9 weeks with significant momentum. With the RSI approaching overbought territory, this suggests there is potential for further upside.
The recent golden cross shown by the MACD, paired with both the RSI and 20-EMA line facing upward, indicates positive momentum going forward.
Amid the pattern break-out with momentum, we think the share could put the resistance RM1.64 and the subsequent resistance RM1.82 to the test. Conversely, consolidation starts if the share price dips below the RM1.43 support.
Entry – RM-1.55 – RM1.60
Stop Loss – RM1.40
Target Price – RM1.64 – RM1.82
Source: Mercury Securities Research - 29 Jul 2024
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