Technical Highlights

The stock has been moving upward since early 2024 but started trending downward in June. During this downtrend, a forming triangle pattern was spotted. Yesterday, the stock broke out of the pattern with a 4% gain and is now trading above all three key EMAs. It also formed a bullish W pattern under the pink resistance line. If the stock holds above this line, we could see a further upside potential, and strengthen the bullish outlook.

Momentum indicators are positive. RSI is trading at 62 and continues to climb. MACD has also moved upward and turned positive, which is a good sign for the stock’s momentum. Additionally, buying volume has surged to its highest level since June 2024, reigniting investor interest and potentially continuing the uptrend.

In terms of entry points, a favourable range would be between RM0.750 and RM0.770. The first major resistance is at RM0.775. A successful break and hold at this level would confirm the bullish W pattern, pushing the stock toward RM0.840, near its 52-week high. However, on the downside, if the stock falls below RM 0.700, it could retrace further to around RM0.640, which previously served as a consolidation zone.

Entry – RM0.750 – RM0.770

Stop Loss – RM0.700

Target Price – RM0.775 – RM0.840

Source: Mercury Research - 4 Oct 2024