Technical Highlights

The stock has been shaping a solid triangle pattern and is currently positioned in the squeeze zone. Yesterday, a strong bullish candle pushed the price to the upper boundary of the triangle, signalling potential strength ahead. Today will be a key moment to see if it can break out of the pattern. The stock is also trading above a macro uptrend line that has been in place since January 2024, where it has consistently rebounded each time it touches the line.

Momentum indicators are looking strong as well. The RSI is trending upward, having recently bounced back from oversold levels, signaling growing strength. The MACD is also on the verge of forming a golden cross and selling pressure has been gradually declining, giving additional confidence in the stock’s potential upward movement.

An entry point at the current price could offer a good opportunity, though waiting for a confirmed breakout provides more certainty. The first resistance level is RM0.660, with a potential move up to the second resistance level of RM0.740 (near 52-week high) if it breaks through. On the downside, a drop to RM0.555 may start a correction, invalidating both the triangle pattern and the macro uptrend.

Entry – RM0.590 – RM0.600

Stop Loss – RM0.555

Target Price – RM0.660 – RM0.740

Source: Mercury Securities Research - 13 Sep 2024