Technical Highlights

The stock entered a correction phase, dipping to its 52-week low in late August. Upon reaching its trough, the stock rebounded sharply as strong trading momentum returned. Subsequently, the stock traded sideways within the RM0.605 to RM0.660 range as trading momentum remained neutral. Yesterday, a spike in trading momentum sent the stock significantly higher and triggered a flag pattern breakout. These signals indicate the potential for a trend reversal in the stock ahead.

Momentum indicators are favourable. The RSI is spiking up after a period of relatively muted movement, indicating the return of strong buying interest. Additionally, the golden cross displayed in the MACD yesterday further confirms the stock's positive momentum.

Looking at the price range between RM0.620 to RM0.630 would provide a good entry opportunity. The first resistance target to watch would be at RM0.660. If there is any further breakout above this point, it could potentially push the stock toward challenging its next resistance target at RM0.740. On the flip side, if the stock dips below the crucial support at RM0.610, it could signal a false breakout and a return to consolidation.

Entry – RM0.620 – RM0.630

Stop Loss – RM0.590

Target Price – RM0.660 – RM0.740

Source: Mercury Research - 20 Nov 2024