Technical Highlights

After reaching its 52-week high, the stock entered a mild consolidation phase before beginning recovery as buying interest resumed. During this period, multiple spike attempts were observed but failed to push the stock closer towards its 52-week high. Yesterday, a resurgence in buying interest resulted in the formation of a Marabozu candle, as the stock closed significantly higher. This Marabozu candle formation also triggered a triangle pattern breakout, signalling that upbeat momentum is building up in the stock.

Momentum indicators are favourable. The RSI is hooking up strongly, showing buying interest is piling up. Meanwhile, a bullish trend in the stock is on the way, as evidenced by the golden cross in the MACD yesterday.

Looking at an idea entry point, it lies in the range between RM0.200 to RM0.220. The first resistance level to monitor is RM0.230, a recent high for the stock. A successful breach here could form a stage for the stock to challenge the next resistance at RM0.255, with further upside potential toward the RM0.270 level. Conversely, if the stock dips below the crucial support level of RM0.205, this could signal the commencement of the consolidation phase. .

Entry - RM0.200 - RM0.220

Stop Loss - RM0.190

Target Price - RM0.230 - RM0.255 - RM0.270

Source: Mercury Securities Research - 14 Nov 2024