Technical Highlights

The stock has been trading in a sideways pattern since mid-July, following its 52-week high. However, late November saw renewed buying interest, pushing the stock into a series of higher highs and higher lows. At the last closing price of RM0.360, the stock is approaching a critical channel breakout level at RM0.365. Sustained buying momentum could support the pattern breakout, reinforcing the stock's bullish outlook.

Momentum indicators are also supportive. The RSI continues to trend upward, signalling increasing buying interest, while the MACD remains positive, further supporting the near-term bullish momentum.

An ideal entry range lies on RM0.350 to RM0.360. A breakout above RM0.365 would confirm the channel breakout, potentially fuelling the stock to test its next resistance level at RM0.395. There is a potential of further upside to RM0.410 if momentum persists. Conversely, a dip below RM0.320 would signal a re-entry into the consolidation phase, with potential downside support near RM0.290.

Entry - RM0.350 - RM0.360

Stop Loss - RM0.300

Target Price - RM0.365 - RM0.395 - RM0.410

Source: Mercury Securities Research - 14 Jan 2025