Technical Highlights

The stock started an upward trend in early 2024, reaching a peak in June before reversing into a downtrend. During this decline, a triangle pattern was formed. Last Friday, the stock broke out of this triangle with substantial volume. It is currently trading above the 20-day and 200-day EMAs, but remains below the 50-day EMA, which could soon be tested as the uptrend continues.

Momentum indicators further support this bullish outlook. The RSI has risen to 50 and continues to climb after a few months of neutral movement. Meanwhile, the MACD formed a golden cross last week and remains on an upward trajectory, further confirming the stock's positive momentum.

For strategy, an ideal entry range is between RM0.56 and RM0.58. The first resistance stands at RM0.63, with a second target at RM0.67 if the bullish momentum persists. On the downside, a fall below RM0.51 could signal a fallback to the correction phase.

Entry - RM0.56 - RM0.58

Stop Loss - RM0.51

Target Price - RM0.63 - RM0.67

Source: Mercury Securities Research - 18 Nov 2024