Technical Highlights

The stock recently started to pick up after a period of consolidation from its 52-week high. At closing yesterday, the stock rebounded and closed with a large green candle. This rebound not only sent the stock to trade above its 20-EMA line but also broke through the 9-week-long wedge pattern with growing momentum, as indicated by the uptick RSI indicator. Relying on these technical indicators with positive signals, we believe that the stock has a promising upswing opportunity.

The golden cross exhibited by the MACD yesterday indicates strong momentum going forward. Likewise, the upward pointing RSI and 20-EMA line confirms the short-term bullishness of the stock.

With the pattern break-out supported by growing momentum, we think the share could test the resistance at RM1.67 (52-week high) first and subsequently at RM1.77. Conversely, consolidation starts if the share price dips below the RM1.48 support.

Entry – RM-1.60 – RM1.63

Stop Loss – RM1.43

Target Price – RM1.67 – RM1.77

Source: Mercury Securities Research - 13 Aug 2024