Technical Highlights

The stock continued to trade in a higher high and high low pattern despite the recent huge sell-down. We interpret this as a strong indication that the upward movement may continue, as this trading pattern was supported by a breakout with significant trading volume and rising momentum. Yesterday, the stock surged at close, reaching the RM0.905 level which was on course of breaking through the crucial resistance level at RM0.940.

Yesterday, the MACD exhibited a golden cross, signifying growing momentum in the stock. Similarly, the upward-pointing RSI line confirms the bullishness of the stock in the short term.

If the stock's upward momentum can break through its key resistance level at RM0.940, we believe this will provide the strength for the stock to test the subsequent resistance level at RM1.05. Conversely, a stop loss can be put at the recent low price of RM0.855.

Entry – RM0.875 – RM0.905

Stop Loss – RM0.815

Target Price – RM0.940 – RM1.05

Source: Mercury Research - 5 Sept 2024