Technical Highlights

After reaching its 52-week high in early Sep, the stock started to consolidate and formed a triangle pattern. During this period, the stock made several breakout attempts, but weak buying interest caused each attempt to fall short. Recently, however, the resurgence of buying interest has driven the stock to break out of the triangle pattern. Yesterday, with sustained buying interest, the stock continued its upbeat momentum and closed further higher. This also pushed the stock to trade above all its EMA lines, signalling the potential for further upward movement.

Momentum indicators are showing strength. The RSI is rebounding sharply towards overbought territory, indicating the built-up of strong buying interest. Likewise, a golden cross was displayed in the MACD indicator recently, confirming the build-up of positive momentum.

An ideal entry range would be between RM1.15 and RM1.21. The first resistance to monitor is at RM1.22, and a breakout above this level could position the stock to challenge the next resistance at RM1.35. Conversely, consolidation could happen if the stock falls below its recent support level at RM0.985.

Entry - RM1.15 - RM1.21

Stop Loss - RM0.955

Target Price - RM1.22 - RM1.35

Source: Mercury Securities Research - 12 Nov 2024