Technical Highlights

After reaching its 52-week high in mid-May 2024, the stock entered a period of sideways movement, maintaining solid trading momentum. However, significant selling pressure in early November led to a wide consolidation phase. Recently, renewed buying interest has driven the stock into a strong recovery, evidenced by its ability to trade above all key EMA lines. These positive technical indicators suggest a potential upside breakout, supported by strong momentum.

Momentum indicators are supportive. The RSI continue to hover near the overbought zone, signalling sustained buying interest. Similarly, the EMAs line displayed a golden cross, supporting the uptrend pattern and its bullish outlook.

For an ideal entry point, it can be placed in the range between RM1.53 and RM1.54. The first resistance level to watch is RM1.57, the crucial resistance and pattern-trigger point. If this level is cleared, the next target would be RM1.62, the stock's 52-week high. A decisive move above RM1.62 could fuel the stock toward its next target at RM1.68. On the downside, if the stock falls below RM1.46, it could signal the commencement of a consolidation phase and potentially dip towards RM1.41.

Entry - RM1.53 - RM1.54

Stop Loss - RM1.42

Target Price - RM1.57 - RM1.62 - RM1.68

Source: Mercury Securities Research - 20 Jan 2025