Technical Highlights

After peaking at its 52-week high, the stock entered a consolidation phase, showing limited recovery as buying interest remained muted. Following its trough at a 52-week low in mid-December, renewed buying interest has driven the stock into an upward trajectory. Yesterday, sustained bullish momentum pushed the stock higher, confirming a triangle pattern breakout and signalling a potential trend reversal.

Momentum indicators are showing strength and supportive of this positive setup. The RSI is picking up, indicating the buying interest is accumulating. Meanwhile, the build- up of the stock's positive momentum is ascertained by the recent exhibition of a golden cross in the MACD.

Waiting for a slight retracement to the price range between RM2.01 and RM2.03 represents a good entry opportunity. The first resistance is set at RM2.05, and if the stock breaks this level, it could challenge RM2.10. A potential breakout beyond this point could form a stage for the stock to challenge its subsequent target at RM2.17. However, a decline below RM1.94 would invalidate the breakout and suggest a return to consolidation mode.

Entry - RM2.01 - RM2.03

Stop Loss - RM1.91

Target Price - RM2.05 - RM2.10 - RM2.17

Source: Mercury Securities Research - 14 Jan 2025