Technical Highlights

The stock reached its lowest point in November 2024 at RM0.260. Since then, it has made a remarkable recovery, climbing steadily to a peak of RM0.495 before undergoing a healthy pullback to its key support zone. This support zone has proven to be a strong foundation, as the stock bounced back and broke above a key downtrend line, signalling renewed bullish momentum. Currently, the stock is trading comfortably above all three key EMAs.

Momentum indicators are aligning with this bullish outlook. The RSI has rebounded from 40 to a current reading of 58. Meanwhile, the MACD is approaching a golden cross, further supported by a noticeable decrease in selling pressure.

An ideal entry point for this stock lies within the RM0.430 to RM0.450 range. The first resistance level to watch is RM0.510, and if the stock successfully breaks through this, it could rally further to RM0.600, as indicated by the 1-to-1 Fibonacci extension. On the flip side, if the stock falls below RM0.395, it has the potential to head downward, warranting a reassessment of its short-term outlook.

Entry - RM0.430 - RM0.450

Stop Loss - RM0.395

Target Price - RM0.510 - RM0.600

Source: Mercury Securities Research - 23 Jan 2025