The stock is currently forming an ascending triangle, which is a bullish pattern indicating a potential breakout. Recently, the stock managed to break out from a downward trendline and was accompanied by a dragonfly doji, a candlestick pattern known for indicating strong buying pressure with buyers gaining control.
Momentum indicators also look promising. The MACD has completed a golden cross last week. Although the RSI is still neutral, it has started to move upwards from oversold conditions.
The stock is currently at a crucial point, ready to potentially break out of the ascending triangle. The three key EMAs are positioned above the current price, further bolstering the bullish outlook if a breakout occurs.. The first resistance level to watch is RM0.42, followed by RM0.46, a level that has previously acted as strong resistance. On the downside, if the price falls below RM0.35, it could break the long-term uptrend, signaling a potential reversal and a shift in market sentiment.
Entry – RM0.375 – RM0.395
Stop Loss – RM0.345
Target Price – RM0.42 – RM0.46
Source: Mercury Research - 21 Aug 2024
Chart | Stock Name | Last | Change | Volume |
---|