Technical Highlights

The stock has been climbing steadily since early 2024 and recently formed an ascending triangle, breaking out of this pattern just yesterday. It continues to ride the upward trend and is currently trading above all three key EMAs, signalling ongoing strength in the movement.

Momentum indicators are looking solid. The RSI sits at 56 and is still trending upward, showing continued strength. The MACD has been performing well, with a golden cross forming this week. Adding to the bullish outlook, buying volume has been rising steadily, suggesting that investors are increasingly confident.

For entry, it depends on the breakout from the ascending triangle, with a favourable range between RM1.54 to RM1.58. The first resistance is at RM1.64, and once that level is breached, the stock could aim for RM1.73, which aligns with the 52-week high. On the flip side, if the price dips to RM1.50, it could indicate a false breakout. Should it fall below RM1.42, that would signal a break in the bullish trend line, pointing to a potential reversal.

Entry – RM1.54 – RM1.58

Stop Loss – RM1.42

Target Price – RM1.64 – RM1.73

Source: Mercury Securities Research - 18 Oct 2024