Technical Highlights

The stock recently formed a falling wedge pattern as it consolidated into a tighter trading range. Yesterday, a surge in trading activity, with volume spiking to 3.3x its 90-day average, pushed the stock to close 4% higher than its opening price. This volume-driven rally triggered a breakout from the falling wedge pattern. We think the stock appears primed for further upside potential.

Momentum indicators reinforce the strength of this pattern breakout. The RSI is picking up after a period of relatively muted movement, indicating renewed trading interest. Meanwhile, both the upward-pointing MACD and 20-day EMA lines confirm the short-term bullishness of the stock.

Waiting for a slight pull-back to the price range between RM0.385 to RM0.400 provides a good entry opportunity. The first resistance level lies at RM0.415. A potential breach above this point could set the stage for the stock to test RM0.460, the next target resistance level. Conversely, a false pattern breakout could happen if the stock descends below its recent support level of RM0.365.

Entry - RM0.385 - RM0.400

Stop Loss - RM0.345

Target Price - RM0.415 - RM0.460

Source: Mercury Securities Research - 6 Dec 2024