Technical Highlights

The stock experienced a strong bull run earlier in 2024, peaking at RM1.60 in June before entering a downtrend that reached a 52-week low of RM0.97. From August to December, the stock traded within a consolidation zone. Notably, a bullish W-shaped pattern has formed, with the stock previously struggling to break through the key resistance at RM1.12. However, this week marked a significant shift as the stock successfully broke out of that resistance, confirming the bullish W-pattern.

Following this breakout, the stock is now trading above all three key EMAs, with the 20-day and 50-day EMAs crossing yesterday. The RSI stands at 70 and continues to move upward, while the MACD formed a golden cross last week. The upward movement has been supported by a surge in trading volume, with buying volume reaching its highest level since August 2024.

It would be wise to wait for a healthy pullback, ideally within the range of RM1.15 to RM1.20. The first resistance to watch is at RM1.27, followed by RM1.39-a level that previously served as a major support line in June but has now turned into a key resistance zone. On the downside, if the stock falls below RM1.11, it would indicate a loss of bullish momentum and could signal a return to a downward trend.

Entry - RM1.15 - RM1.20

Stop Loss - RM1.11

Target Price - RM1.27 - RM1.39

Source: Mercury Securities Research - 8 Jan 2025