Technical Highlights

The stock has broken out of its consolidation zone and reached a peak of RM1.36 in November 2024. Since then, it has been moving downward but remains above its previous consolidation level. During this period, a triangle pattern formed, and last week, the stock broke out from the squeeze zone with strong volume. Just yesterday, it closed with a strong bullish candlestick and is now trading above all three key EMAs.

Momentum indicators support further upside potential. The RSI is currently at 56 and still trending upward, indicating increasing buying pressure. Meanwhile, the MACD formed a golden cross last week and also continues to rise.

An ideal entry for this stock would be between RM1.13 and RM1.16. The first resistance is at RM1.20, with the next target at RM1.30. If the stock successfully breaks both, it will challenge RM1.36 as the third resistance. This setup offers an attractive risk-reward ratio above 3, making it a compelling trade opportunity.

Entry - RM1.13 - RM1.16

Stop Loss - RM1.08

Target Price - RM1.20 - RM1.30 - RM1.36

Source: Mercury Securities Research - 4 Feb 2025