Technical Highlights

The stock underwent significant correction and reached its 52-week low last Friday. Yesterday, a surge in trading activity, with volume spiking to 4.6x its 90-day average, pushed the stock to close 6% higher than its opening price. This spike also caused the stock to breach the triangle pattern. These multiple positive signals suggest the stock is laying the groundwork for a trend reversal and a shift into positive movement ahead.

Momentum indicators align with this trend reversal. The RSI is spiking up, signalling the return of strong buying interest. Meanwhile, the short-term bullish outlook of the stock is ascertained by the recent exhibition of the golden cross in the MACD.

In terms of entry points, a strategic range would be between RM0.725 and RM0.735. The first major resistance is at RM0.750. A successful break above this level could push the stock toward RM0.830, the recent high point. However, on the downside, if the stock falls below RM 0.700, it could retrace further to RM0.650, its 52-week low.

Entry - RM0.725 - RM0.735

Stop Loss - RM0.670

Target Price - RM0.750 - RM0.830

Source: Mercury Securities Research - 10 Dec 2024