Technical Highlights

The stock has shown an uptrend earlier this year, reaching a peak in June before entering a downward movement and a four-month consolidation period. Last Friday, it finally broke out of this consolidation zone and continued its climb with increased trading volume. Currently, the stock is trading above all three key EMAs, which are nearing a convergence—further supporting the upward momentum.

Momentum indicators support the stock's optimistic outlook. The RSI currently sits at 79, slightly overbought but reflects strong buying pressure. Additionally, the MACD is also rising, underscoring the strength of the current trend.

For an ideal entry, it may be wise to wait for a minor pullback that brings the RSI closer to 74, potentially offering an entry range of around RM1.21. The first resistance level to watch is RM1.34, and if breached, the stock may aim for RM1.45 as the next resistance. This previous support level may act as a resistance level. On the downside, if the stock drops below RM1.09, it could retreat toward the consolidation support at RM0.99.

Entry – RM1.21 – RM1.24

Stop Loss – RM1.09

Target Price – RM1.34 – RM1.45

Source: Mercury Securities Research - 6 Nov 2024