Mercury Securities Research

Icon Offshore (5255) - Upswing Continues?

MercurySec
Publish date: Fri, 02 Aug 2024, 09:38 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.

Mercury Securities Sdn. Bhd.
L-7-2, No.2, Jalan Solaris,
Solaris Mont Kiara, 50480, Kuala Lumpur
Tel: 603-6203 7227
Email: mercurykl@mersec.com.my

Technical Highlights

The consolidation phase (following the previous 52-week high) came to an end yesterday when the stock surged and closed at a new 52-week high price of RM1.18. Additionally, the stock had also been trading above all its 20-EMA lines over the past 1 month. Momentum was still keeping up, especially with the formation of green candle that broke through the 2-month long pennant pattern with strong momentum (RSI is near approaching the overbought territory). With these positive signals, we think that upswing potential may still be in play. . Yesterday, the MACD exhibited a golden cross, which denotes strong momentum going forward. Additionally, the upward-pointing 20-EMA line confirms its short-term bullishness.

Given the pattern break-out with momentum, we think the share could test the new 52-week high resistance at RM1.41 first and subsequently at 1.50 resistance. Conversely, consolidation starts if the share price dips below the RM1.06 support.

Entry – RM-1.18 – RM1.20

Stop Loss – RM1.05

Target Price – RM1.41 – RM1.50

Source: Mercury Securities Research - 2 Aug 2024

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