Technical Highlights

Since late March, the stock has been in consolidation mode, with trading momentum remaining muted. Last Friday, multiple signals supporting a potential trend reversal emerged. The surge in the trading interest pushed the stock higher, forming a bullish Marubozu candle. This momentum also triggered a triangle pattern breakout, pushing the stock above all its EMA lines. These signals collectively suggest a strong short- term bullish outlook for the stock.

Momentum indicators align with this positive outlook. The RSI is picking up strongly after a period of sideways movements, signalling the return of robust trading interest. Additionally, the golden cross formation in the MACD last Friday reinforces the build- up of bullish momentum in the stock.

A strategic entry opportunity lies within the range of RM0.460 to RM0.480. The first resistance to watch is RM0.510, and a breakout above this level could see the stock rally toward RM0.535. Conversely, a dip below RM0.415 could signal a return to the downtrend, with potential correction toward RM0.400

Entry - RM0.460 - RM0.480

Stop Loss - RM0.415

Target Price - RM0.510 - RM0.535

Source: Mercury Securities Research - 9 Dec 2024