Technical Highlights

The stock bounced back in November and has since been steadily moving upward. By early December, it entered a rectangle pattern, creating a micro-consolidation zone. Yesterday, the stock successfully broke out of this rectangle and closed above the consolidation zone, signalling a positive momentum. Impressively, it is currently trading above all three key EMAs, and its recent performance includes seven consecutive green candles, reflecting strong upward pressure.

Momentum indicators further support the bullish narrative. The RSI is at 70 and continues to trend upward, showing strength. Similarly, the MACD formed a golden cross yesterday and is also moving higher, adding to the positive outlook. Trading volume has surged recently, indicating heightened interest and activity compared to its usual levels.

An ideal entry range for this stock would be between RM0.350 and RM0.360. The first resistance is at RM0.370, while the second resistance lies at the 52-week high of RM0.410. Conversely, if the stock trades below RM0.325, it may continue to move sideways at the lower boundary of the rectangle. A sharp break below this level would likely signal the start of a downward trend, necessitating caution.

Entry - RM0.350 - RM0.360

Stop Loss - RM0.325

Target Price - RM0.370 - RM0.410

Source: Mercury Securities Research - 31 Dec 2024