Technical Highlights

The stock reached a peak of RM1.20 in July 2024 before entering a downtrend, forming a falling wedge pattern. Last week, it broke out of this pattern with its highest trading volume since July 2024. Following this breakout, the stock is now trading above all three key EMAs, signalling a potential trend reversal.

Momentum indicators are looking good. The RSI, currently at 63, has rebounded from the neutral momentum of last month and continues to move upward. Similarly, the MACD is trending higher, further highlighting the stock's bullish momentum.

An ideal entry point would be after a slight pullback to the range of RM0.865 to RM0.895, where buying interest appears concentrated. The first resistance level is at RM0.945, and a successful breakout could see the stock testing RM1.040. However, it's worth noting that this second resistance has historically been a strong resistance, potentially posing a challenge. Conversely, if the stock falls below RM0.805, it could indicate a false breakout and likely trigger a correction phase.

Entry - RM0.865 - RM0.895

Stop Loss - RM0.805

Target Price - RM0.945 - RM1.040

Source: Mercury Securities Research - 2 Dec 2024