Technical Highlights

The stock had been on a downtrend since December 2024 but recently rebounded from a low of RM1.17 in early January. Last Monday, the stock broke out of this downtrend, forming a healthy pullback before continuing its upward move. The breakout was accompanied by a volume surge-the highest recorded since November 2024. Adding to the positive outlook, the stock is also now trading above all the three key EMAs.

Momentum indicators further affirm this positive setup. The RSI is currently trading at a healthy 51 and is still moving upward. Meanwhile, the MACD is showing signs of a potential golden cross, with the buy momentum steadily increasing. If the buying interest sustains, this golden cross formation could confirm a new bullish cycle.

The ideal entry range for this stock is between RM1.25 and RM1.30. The first resistance level to watch is RM1.32, followed by a stronger resistance at RM1.40. A successful breakout beyond these levels could see the stock climb toward RM1.44. On the downside, if the stock drops below RM1.18, it would indicate that the recent breakout was a false move, signalling a return to the downtrend.

Entry - RM1.25 - RM1.30

Stop Loss - RM1.18

Target Price - RM1.32 - RM1.40 - RM1.44

Source: Mercury Securities Research - 13 Jan 2025