Technical Highlights

Following its 52-week high in early May 2024, the stock entered a prolonged consolidation phase. After hitting its 52-week low, it began a gradual upward trend, marking the start of a recovery phase. Yesterday's surge in buying interest resulted in a strong close, forming a bullish Marubozu candle. This breakout simultaneously confirmed a triangle pattern breakout and propelled the stock above its EMA-20 line. These multiple bullish signals are supportive of the stock's bullish outlook, suggesting further upside movement ahead.

Momentum indicators are favourable and supportive of the stock's positive outlook. The RSI is rebounding strongly from the oversold zone, indicating the resurgence of trading interest. Likewise, the near-to-exhibition of the golden cross in the MACD confirming the built-up of the stock's positive momentum.

A good entry opportunity can be observed in the range between RM0.470 to RM0.480. The first resistance level to watch would be at RM0.495. If the stock successfully breaches above and beyond this point, this would form a stage for the stock to test its subsequent resistance at RM0.535. Conversely, if the stock falls toward its recent support at RM0.450, signalling false pattern breakout and potentially consolidate towards its lower support level at RM0.433.

Entry - RM0.470 - RM0.480

Stop Loss - RM0.440

Target Price - RM0.495 - RM0.535

Source: Mercury Securities Research - 16 Jan 2025