Technical Highlights

The stock has been in an upward trajectory since August 2024, consistently rebounding off its uptrend line with each touch. So far, it has bounced back three times but remains capped by a key resistance at RM1.01, with three unsuccessful attempts to break above it. Recently, buying momentum has steadily increased, and the stock is now trading above all three key EMAs. Adding to this positive outlook, the stock is nearing a squeeze zone, showing a potential breakout just around the corner.

Momentum indicators are also looking good. The RSI stands at a healthy 53 and is trending upwards. Meanwhile, the MACD is on the brink of forming a golden cross, if the buying activity persists in the coming weeks.

An ideal trading strategy would be entering between RM0.93 and RM0.95, with a first resistance target at RM1.01 and a second at RM1.12, near its 52-week high. However, if the stock drops below RM0.90, which coincides with its 200-day EMA, it could indicate a reversal into a correction phase.

Entry - RM0.93 - RM0.95

Stop Loss - RM0.90

Target Price - RM1.01 - RM1.12

Source: Mercury Securities Research - 2 Jan 2025