Technical Highlights

Multiple uptrend movements pushed the stock higher toward its 52-week high before it entered into a consolidation phase. During this period, the stock made several trend reversal attempts, but weak buying interest caused each attempt to fall short. Recently, however, renewed buying interest has sparked a substantial recovery, driving the stock higher and resulting in a breakout from the triangle pattern, with the stock now trading above its 50-day EMA. These indicators are signalling that the stock may be entering a positive uptrend ahead.

Momentum indicators are favourable. The RSI is recovering gradually from the recent sideways movement, indicating buying interest is accumulating. Similarly, a golden cross was displayed in the MACD indicator recently, signalling the build-up of positive momentum.

An ideal entry point lies in the range between RM0.610 and RM0.625. The first resistance level to watch is RM0.640. A potential breakout from this point would form a stage for the stock to test its subsequent resistance level at RM0.695. Conversely, consolidation could happen if the stock dip below its recent support level at RM0.600.

Entry - RM0.610 - RM0.625

Stop Loss - RM0.580

Target Price - RM0.640 - RM0.695

Source: Mercury Securities Research - 11 Nov 2024