Technical Highlights

After hitting its low in mid-February, the stock began a strong rebound toward its 52- week high. This upward momentum eased briefly as buying interest cooled, leading to a mild consolidation phase before the rebound resumed. The recovery has been robust, marked by a pattern of higher highs and higher lows. Yesterday, a surge in trading momentum propelled the stock higher, forming a Marabozu candle and triggering a triangle pattern breakout. These developments position the stock for a strong bullish trend in the near term.

Momentum indicators are gaining strength. The RSI is rebounding forcefully toward the overbought zone, reflecting sustained buying interest. Additionally, the recent golden cross in the MACD further confirms the build-up of positive momentum in the stock.

An ideal entry point lies in the range between RM0.375 and RM0.395. Supported by these positive indicators, the stock could test its first resistance at RM0.400. A breakout above this level could drive the stock toward its 52-week high at RM0.435. Conversely, if the stock falls below its RM0.360 support level, it may signal the start of a consolidation phase.

Entry - RM0.375 - RM0.395

Stop Loss - RM0.330

Target Price - RM0.400 - RM0.435

Source: Mercury Securities Research - 14 Nov 2024