Technical Highlights

The stock had been in a downtrend since September 2023, but this week it broke through the downtrend line and has stayed above it for two consecutive days. This breakout is also accompanied by the highest buying volume since 2021. Moreover, the stock is now trading above all 3 key EMAs, indicating a positive momentum.

Momentum indicators are looking good. The RSI is currently trading at 74, while the MACD has been rising steadily, reinforcing the stock's bullish trajectory.

An ideal strategy for this stock would be to wait for a slight pullback to a range of RM0.815 and RM0.830. The first resistance is at RM0.865, and a breakthrough could see the stock challenge the second resistance at RM0.965, a level that previously served as strong support. On the downside, if the stock trades below RM0.775, it could indicate a false breakout, potentially leading to a correction toward RM0.670.

Entry - RM0.815 - RM0.830

Stop Loss - RM0.775

Target Price - RM0.865 - RM0.965

Source: Mercury Securities Research - 20 Dec 2024