Technical Highlights

The stock has been in a downtrend since early 2024, reaching its bottom earlier this month at RM0.375. Since then, it has rebounded strongly and has broken out of its downtrend with a significant increase in buying volume. Currently, the stock is trading above its 20-day EMA but remains below the 50-day and 200-day EMAs. As it approaches the 50-day EMA, it is gearing up for a critical test of this level.

Momentum indicators are showing positive signs, with the RSI at 54, marking its highest level since July, and continue to rise following a recent oversold condition. Additionally, the MACD also formed a golden cross earlier this month and is now trending upward, signalling strengthening bullish momentum.

The ideal entry range for this stock is between RM0.430 and RM0.440, with the first resistance at RM0.460, a level previously acting as a consolidation zone. A successful breakout here could lead to a swift move toward the second resistance at RM0.515, which aligns with the 50-day EMA. Conversely, if the stock falls below RM0.390, near its 52-week low, it may re-enter a downtrend.

Entry - RM0.430 - RM0.440

Stop Loss - RM0.390

Target Price - RM0.460 - RM0.515

Source: Mercury Securities Research - 29 Nov 2024