Technical Highlights

After reaching its peak, the stock underwent a significant correction before rebounding swiftly, driven by growing trading interest. A rising wedge pattern was formed as the stock started to trend upward gradually within the zone. Yesterday, stronger buying interest pushed the stock higher, triggering a breakout from the rising wedge pattern. With the stock continuing to trade in a higher-highs and higher-lows pattern, we believe it could regain positive momentum to retest its 52-week high.

Momentum indicators are convincing and support the stock's positive trend. The RSI continue to accelerate, indicating the build-up of strong buying interest. Meanwhile, a golden cross was displayed in the MACD yesterday, confirming the stock's positive momentum.

An ideal entry opportunity lies in the range between RM1.18 and RM1.20. The immediate resistance level to challenge is RM1.21, potentially moving to RM1.27 if it breaks through. Should the bullish momentum hold, the stock may aim for another resistance at RM1.36, the stock's 52-week high. On the downside, RM1.13 is a critical support level; a drop below this point could signal a false breakout, leading to further declines and potentially testing the RM1.02 low.

Entry - RM1.18 - RM1.20

Stop Loss - RM1.06

Target Price - RM1.21 - RM1.27 - RM1.36

Source: Mercury Securities Research - 11 Dec 2024