Technical Highlights

The stock peaked in June 2024 before entering a downtrend phase that lasted until September. During this pullback, it formed a bullish wedge pattern, and just yesterday, the stock broke out with a 12% gain—the highest volume seen since its June peak. Currently, the stock is trading above the 20-day EMA and is testing the 50-day and 200-day EMAs, indicating a potential shift in trend.

Momentum is also turning positive. The RSI now stands at 58, steadily rising after four months of neutral movement. The MACD has also started climbing, backed by strong volume, indicating a renewed bullish momentum in the stock.

The ideal entry range would be between RM0.365 to RM0.375, with the first resistance at RM 0420. If the stock breaks through this level, it could challenge RM0.480, a level close to its 52-week high. Should it push beyond RM 0.480, the stock could potentially test its 52-week high. On the downside, if the stock falls below RM0.335, it would signal a false breakout and trigger a correction.

Entry – RM0.365 – RM0.375

Stop Loss – RM0.335

Target Price – RM0.420 – RM0.480

Source: Mercury Research - 2 Oct 2024