Technical Highlights

The stock has been in a downtrend movement since early Mar 2024. In late July, the return of trading interest pushed the stock higher and displayed a strong recovery. However, the recovery seemed to be short-lived as it only lasted for about a month before dipping into another consolidation phase. Yesterday, the spike in buying interest sparked a recovery again as the stock jumped and broke through both the crucial RM1.83 resistance level (extended from its recent high and the triangle pattern). We think these breakouts are strong as they are accompanied by a typical W-pattern, positioning the stock for more upside movement.

Momentum indicators are supportive of the bullish outlook. The RSI is accelerating toward overbought territory, reinforcing the strength of buying interest. Similarly, the MACD confirmed a golden cross yesterday, reinforcing the positive trajectory. Additionally, the stock is also trading above its short-term EMA, suggesting bullish trend movement in the short-term.

For an ideal entry range, it lies between RM1.80 to RM1.85. The first resistance lies at RM1.93; any further breakout above this point could position the stock to challenge its next resistance target at RM1.98. Inversely, a dip below RM1.68 would invalidate the breakout and could followed by a consolidation.

Entry - RM1.80 - RM1.83

Stop Loss - RM1.60

Target Price - RM1.93 - RM1.98

Source: Mercury Securities Research - 3 Dec 2024