Technical Highlights

Technical Highlights The stock has been exhibiting a bullish trend over the past period. Currently, a triangle pattern is formed, which typically indicates a continuation of the prior uptrend. The sustained high-volume buying activity paired with this pattern shows that there is an accumulation from market participants. Furthermore, the stock has been consistently trading above its 200-day EMA, providing strong support. It is also comfortably positioned between the 20 and 50-day EMAs.

Momentum indicators are also turning positive. The MACD is about to form a golden cross. Although the RSI is in the neutral zone, the arrow has recently started pointing up, signalling upward strength at this level.

Given strong momentum and trading volume, a decisive break above the RM1.04 will confirm the breakout of the triangle pattern. This breakout has the potential to unlock significant upside, with the stock aiming for testing resistance at RM1.09 first and thereafter at RM1.19. On the flipside, a dip below RM0.970 could signify the start of a correction phase. Entry – RM-0.99 – RM1.01 Stop Loss – RM0.920 Target Price – RM1.09 – RM1.19

Source: Mercury Securities Research - 16 Aug 2024