Technical Highlights

The stock has been trading near its 52-week low of RM0.225 but showed signs of a reversal after breaking out of the downtrend yesterday with a surge in buying volume. Adding to the optimism, the stock has moved above the 20-day and 50-day EMA lines. It is now approaching the 200-day EMA line, a key resistance level that could confirm a stronger uptrend if surpassed.

Momentum indicators further support the positive outlook. The RSI is currently at 59 and still trending upward. Similarly, the MACD formed a golden cross earlier this month and continues to move higher. Trading volume has also been steadily increasing during the stock's consolidation, indicating growing market interest.

The ideal entry point for this stock is between RM0.235 and RM0.240. The first target is RM0.280, marking the ceiling of the consolidation zone. A breakout above RM0.28 could pave the way for the stock to test RM0.300 as the next resistance. However, on the downside, if the stock drops below RM0.220, creating a new 52-week low, it could signal the start of a renewed downtrend.

Entry - RM0.235 - RM0.240

Stop Loss - RM0.220

Target Price - RM0.28 - RM0.300

Source: Mercury Securities Research - 12 Dec 2024