Technical Highlights

The stock was in the consolidation phase after reaching its 52-week high in mid-June 2024. With the stock consolidating into a narrow range, it signals potential trend reversal. The signal becomes affirmative when the stock breaks out of the pennant pattern and trades above all its EMA lines.

Momentum indicators are supportive of the trend reversal. The RSI is currently trending sharply upward, approaching its overbought level, signalling strong buying interest resuming. Additionally, the MACD recently displayed a golden cross, reinforcing the stock's current short-term bullish sentiment.

A good entry point can be set between RM0.620 to RM0.650. The first resistance stands at RM0.700. If the stock can successfully break above this level, this could push the stock to test its next resistance at RM0.770. Conversely, if the stock descends below RM 0.565, this signals the commencement of the consolidation phase.

Entry – RM0.620 – RM0.650

Stop Loss – RM0.515

Target Price – RM0.700 – RM0.770

Source: Mercury Securities Research - 8 Oct 2024