Technical Highlights

The stock entered a consolidation phase after several downward moves in early August. However, the tide has turned as the stock began forming higher highs and higher lows, signalling a resurgence in buying interest. Yesterday, the stock surged, breaking out of its pennant pattern with an impressive spike in trading volume—6.4x its average 30-day volume. This volume-driven breakout has pushed the stock above all its EMA lines, confirming a shift into an upward trend.

Momentum indicator is looking strong, with the RSI showing bullishness but not yet reaching overbought territory. Meanwhile, the recent golden cross displayed in the MACD indicator also ascertains another positive signal for upward momentum.

An ideal entry point lies between RM0.900 and RM0.925. If the current momentum holds, the stock could aim for its first resistance at RM0.955. A successful break above this level would set the stage for a run toward RM1.00. However, if the stock falls below its recent support at RM0.850, it could signal a return to the consolidation phase.

Entry – RM0.900 – RM0.925

Stop Loss – RM0.800

Target Price – RM0.955 – RM1.00

Source: Mercury Securities Research - 11 Oct 2024