Technical Highlights

The stock has been on a strong upward trend since mid-2023, consistently supported by a macro uptrend line. Although there was a sudden dip in late August, it quickly rebounded after touching this key trendline, regaining its momentum. Last Friday, the stock broke through a downward trendline with impressive buying volume, and yesterday’s session closed with a bullish candlestick. The stock is now trading above all three key EMAs, reinforcing its short- and medium-term upward potential after the breakout. Momentum indicators are further supporting this bullish outlook. The RSI currently stands at 59 and is on the rise. Meanwhile, the MACD formed a golden cross earlier this month, with strong buying pressure driving the stock higher. The ideal entry range lies between RM1.30-1.36, with RM1.30 aligning with the 50- day EMA, providing a stable buying zone. The first key resistance level is RM1.40, and if the stock breaks above this level, the next target will be RM1.54. A successful push beyond RM1.54 could bring the 52-week high of RM1.70 into play. However, if the stock drops to RM 1.10, it may signal the end of the current uptrend, with a correction potentially underway.

Entry – RM1.30 – RM1.36

Stop Loss – RM1.10

Target Price – RM1.40 – RM1.54

Source: Mercury Securities Research - 26 Sep 2024