Technical Highlights

The stock began its upward trend in August 2024, reaching a peak in late October. Recently, the stock formed a short-term downtrend line, which it attempted to break out from last Friday. This marks the first time the stock has traded above all three key EMA lines within the downtrend formation. Additionally, the stock has successfully reclaimed the key support level at RM0.80, following a bear trap.

Momentum indicators are showing a positive outlook. The RSI, currently at 48, has been bouncing back and is trending upward sharply. Simultaneously, the MACD is on the verge of forming a golden cross, provided the selling volume continues to decrease and the buying momentum holds through the week.

An ideal entry range for this stock lies between RM0.79 and RM0.81. The first resistance level is at RM0.85, with a second resistance around RM0.90. Should the bullish momentum sustains, the stock could challenge near its 52-week high at RM0.97. However, if it falls below RM0.77, it would indicate a continuation of the downtrend.

Entry - RM0.79 - RM0.81

Stop Loss - RM0.77

Target Price - RM0.85 - RM0.90 - RM0.97

Source: Mercury Securities Research - 23 Dec 2024