Technical Highlights

The stock recently broke out from a macro downtrend line that had previously served as resistance, turning the stock downward four times on contact. Yesterday, the stock successfully moved above this line, showing a clear breakout with rising buying volume. Just before this breakout, a small consolidation phase was formed within a rectangle-shaped box, with the stock now trading above all three key EMAs.

Momentum indicators are showing positive signals, with the RSI currently at 66 and MACD also formed a golden cross last week, further reinforcing the stock’s strength.

In terms of strategy, an ideal entry range lies between RM2.17 and RM2.20. The first resistance level to watch is RM2.31, and if the stock surpasses this level, the next target will be RM2.54. On the downside, if the stock falls below RM2.03—previously the lower boundary of the consolidation box—this could signal a correction phase and warrant some caution.

Entry – RM2.17 – RM2.20

Stop Loss – RM2.03

Target Price – RM2.31 – RM2.54

Source: Mercury Securities Research - 6 Nov 2024