Technical Highlights

The stock has been in a downtrend since March 2024 but showed signs of recovery in early December, breaking out from its downtrend. Following the breakout, the stock continued its upward movement with a healthy pullback above the trendline, confirming the reversal. Additionally, the formation of a W-pattern has provided further positive signals, with the stock now trading above the pattern's neckline. Encouragingly, it is also trading above its 20-day and 50-day EMA lines while approaching the 200-day EMA line.

Momentum indicators are also strengthening. The RSI continues to rise, currently at 65, while the MACD is moving upward following the golden cross formed in late November. Additionally, trading volume has surged, indicating strong buying interest.

An ideal entry price range lies between the RM0.81 and RM0.83 range. The first resistance to watch is at RM0.87. A potential breakout from this point could position the stock to challenge the subsequent resistance at RM0.93. Should the stock overcome both resistances, it has the potential to test RM1.00 as the next target. On the downside, a drop below RM0.77 could indicate a reversal, potentially driving the stock toward its 52-week low of RM0.68.

Entry - RM0.81 - RM0.83

Stop Loss - RM0.77

Target Price - RM0.87 - RM0.93 - RM1.00

Source: Mercury Securities Research - 12 Dec 2024