Technical Highlights

The stock began its impressive rally in January 2024, surging 160% to its peak in July, marking a 52-week high. However, after reaching that peak, the stock move downward all the way and entered a 4-month consolidation phase. Last week, the stock finally broke out of this consolidation zone and is now trading above the critical resistance line within a rectangle box, confirming the breakout. Notably, the stock closed last Friday with a bullish dragonfly candlestick. Adding to this, the stock is also trading above all three EMA levels.

Momentum indicators further support this positive outlook. The RSI is currently at 61, indicating healthy momentum that is not yet overbought. The MACD is also trending upward, and a golden cross is on the verge of forming.

The ideal entry point for this stock is within theRM0.93 to RM0.96 range. The first resistance to watch is at RM0.98, near the top of the consolidation box. A successful break above this level could propel the stock toward the next resistance at RM1.04. Beyond that, the target is RM1.10, which marks the starting point of the previous downtrend. On the downside, if the stock drops below RM0.87, it would signal a return to the consolidation zone, breaking the uptrend line and a further downside risk.

Entry - RM0.93 - RM0.96

Stop Loss - RM0.87

Target Price - RM0.98 - RM1.04 - RM1.10

Source: Mercury Securities Research - 13 Jan 2025