Technical Highlights

The stock has been in a downtrend since early May 2024, with multiple failed trend reversal attempts due to subdued buying interest. After reaching its trough (52-week low), the stock gradually recovered. On the first trading day of the Year of the Snake (last Friday), a resurgence in buying momentum (1.7x its 90-day average volume) triggered a breakout from a triangle pattern, signalling a potential trend reversal.

Momentum indicators reinforce this positive shift. The RSI continues to accelerate, indicating accumulating buying interest. Meanwhile, strong buying activity has also pushed the MACD to form a golden cross, confirming the buildup of the stock's bullish outlook

For an ideal entry point, it can be set at the range between RM2.23 to RM2.25. If the stock can break the first resistance at RM2.30, there's potential for a climb towards RM2.36. A sustained move above this level may position the stock to challenge its next resistance at RM2.43. Conversely, a dip to RM2.17 could signal the start of a correction.

Entry - RM2.23 - RM2.25

Stop Loss - RM2.13

Target Price - RM2.30 - RM2.36 - RM2.43

Source: Mercury Securities Research - 3 Feb 2025