Technical Highlights

After peaking in November 2023, the stock entered a prolonged downtrend until now. Last Friday marked a significant reversal as it broke out of this downtrend with the highest trading volume since December 2023, delivering an 18% gain. This breakout not only ended the downtrend but also surpassed a key resistance at RM0.50-a level that had previously seen multiple failed attempts. Currently, the stock is trading above its 20 and 50-day EMAs, but it remains below the 200-day EMA.

Momentum indicators also reinforce this breakout. The RSI has risen to 61, its highest since June 2024. Similarly, the MACD formed a golden cross earlier this month and continues to move upward.

An ideal entry range lies between RM0.52 and RM0.54 after a minor pullback. The first resistance stands at RM0.56, with a second target at RM0.62 if the bullish momentum continues. Conversely, if the stock falls below the critical support level at RM0.50, it may signal a potential decline toward RM0.48 or lower.

Entry - RM0.52 - RM0.54

Stop Loss - RM0.48

Target Price - RM0.56 - RM0.62

Source: Mercury Securities Research - 18 Nov 2024