Technical Highlights

After multiple corrections in late July, the stock regained momentum and has since established an upward trend, gradually climbing higher. Last Friday, renewed buying interest drove the stock to form a large green candle, confirming a triangle pattern breakout and signalling a bullish outlook. We believe these bullish signals form a base for the stock to challenge higher high in the near term.

Momentum indicators are favourable. With the RSI climbing toward the overbought zone, this indicates the solid build-up of buying interest. Similarly, both the upward- pointing 20-day EMA and MACD lines ascertain the stock's short-term bullish momentum.

Waiting a pullback to the price range between RM1.84 and RM1.87 represents a good entry opportunity. The first resistance to monitor is RM1.96, the stock's 52-week high. Breaking above this point means the stock could challenge a new all-time high at RM2.05. On the downside, a move below RM1.76 may indicate a false pattern breakout and potentially consolidate towards its lower support level at RM1.59.

Entry - RM1.84 - RM1.87

Stop Loss - RM1.70

Target Price - RM1.96 - RM2.05

Source: Mercury Securities Research - 6 Jan 2025