Technical Highlights

The stock recently formed a falling wedge pattern as it consolidated within a range. Upon reaching the recent low point, the stock began to rebound which coincided with the resurgence in buying interest. Last Friday, sustained strong buying interest pushed the stock to close higher and break out of the pattern. The last closing price also marked the stock breaching its 20-day EMA line. All in all, these signal multiple positive indicators for further upward movement.

Momentum indicators are supportive of the stock's bullish outlook. The RSI is accelerating from oversold territory, marking the return of buying interest. Similarly, the strong buying interest last Friday triggered a golden cross in the MACD, reinforcing the stock's positive momentum.

Waiting for a slight pullback to the RM1.14-RM1.16 range could present an ideal entry point. The first resistance to watch is RM1.21, and if it breaks, the stock could aim for the next target at RM1.27. This level, previously a strong support, now acts as a significant resistance. On the downside, a drop below RM1.09 could indicate a false breakout, potentially leading to the start of a consolidation phase.

Entry - RM1.14 - RM1.16

Stop Loss - RM1.02

Target Price - RM1.21 - RM1.27

Source: Mercury Securities Research - 30 Dec 2024