Technical Highlights

After peaking in early May 2024, the stock experienced a mild pullback before entering a deeper corrective phase as buying momentum weakened into oversold territory. Following its low, the stock has been gradually recovering, and with the last closing at RM1.02, it is approaching a potential channel pattern breakout. Given the strengthening technical indicators, conditions appear supportive of an imminent breakout.

Momentum indicators reinforce the bullish setup. The RSI continues to trend upward towards overbought territory, signalling sustained buying interest. Additionally, the recent exhibition of a golden cross in the MACD further confirms the bullish outlook for the stock.

An ideal entry point lies in the range of RM1.00 to RM1.02. The first resistance level to watch is RM1.04, and a breakout above this level could push the stock toward RM1.10. Beyond this, the stock has the potential to rally further to RM1.15, the stock's recent high level. On the downside, if the stock falls below RM0.945, it could mean the commencement of a correction phase.

Entry - RM1.00 - RM1.02

Stop Loss - RM0.910

Target Price - RM1.04 - RM1.10 - RM1.15

Source: Mercury Securities Research - 3 Feb 2025