Technical Highlights

The stock showed an upward trend between mid-January and mid-July. After reaching its 52-week high, the stock fell into a consolidation phase as the trading momentum cooled off considerably. However, the consolidation phase proved shortlived, lasting only 2 months, before renewed buying strength drove the stock into recovery and initiated an upward trend. Yesterday, a large green candle formed at the close as strong trading interest pushed the stock higher, triggering a triangle pattern breakout. Supported by these positive technical signals, the breakout suggests potential for further upward movement in the stock.

Momentum indicators are supportive of the pattern breakout. The RSI is picking up from the recent downtrend movement, indicating the accumulation of strong buying interest. Meanwhile, the MACD is just on the verge of initiating a golden cross, further supporting the formation of bullish momentum.

For an ideal entry range, it lies between RM1.10 to RM1.12. If the stock could challenge its first resistance level at RM1.16, any breakout beyond this point could form a stage for the stock to challenge a higher resistance level at RM1.24. Conversely, the stock could enter into a correction phase if it dips below RM1.07, its crucial support level.

Entry – RM1.10 – RM1.12

Stop Loss – RM1.03

Target Price – RM1.16 – RM1.24

Source: Mercury Research - 20 Nov 2024