KKB Engineering, KPJ Healthcare
🏗️ KKB Engineering (9466) – Short-term Uptrend Potential
Recommendation: Technical Buy
Target Price: RM1.78, RM1.89
Stop Loss: RM1.50
Date of Recommendation: 2nd September 2024
Broker: CGS-CIMB Securities
Investment Thesis: KKB Engineering, a leading engineering and construction company, has shown signs of entering a short-term uptrend. The stock recently closed above all its Exponential Moving Averages (EMAs) with a long white candle, signaling strong bullish momentum.
- Technical Breakout: The stock has broken out above its downtrend line from the 52-week high, supported by a higher trading volume. This breakout suggests that a short-term uptrend may be underway.
- Bullish Momentum Indicators:
- MACD and RSI: Both the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) have strengthened further, indicating that upward momentum is picking up.
Valuation and Financials:
KKB Engineering is trading at RM1.67, with target prices set at RM1.78 and RM1.89. The potential for the stock to continue its uptrend makes it an attractive technical buy for aggressive traders.
Share Price Catalysts:
- Sustained breakout above key resistance levels.
- Continued positive performance of technical indicators.
- Strong trading volume confirming the uptrend.
🏥 KPJ Healthcare (5878) – Potential for Another Leg Up
Recommendation: Technical Buy
Target Price: RM1.99, RM2.04, RM2.12
Stop Loss: RM1.79
Date of Recommendation: 2nd September 2024
Broker: CGS-CIMB Securities
Investment Thesis: KPJ Healthcare, a prominent healthcare provider in Malaysia, is showing signs of breaking out of a downtrend and potentially entering another leg up. The stock closed above all EMAs with a white candle last Friday, indicating bullish sentiment.
- Technical Indicators:
- MACD Golden Cross: The Moving Average Convergence Divergence (MACD) confirmed a golden cross, signaling a bullish trend.
- RSI Strength: The Relative Strength Index (RSI) has also hooked up, suggesting that the bulls are gaining control.
- Potential Breakout: The stock appears poised to retest its 52-week high, supported by a longer-term uptrend reflected in the 200-day EMA.
Valuation and Financials:
KPJ Healthcare is currently trading at RM1.92, with target prices set at RM1.99, RM2.04, and RM2.12. The stock’s potential to break out and continue its upward trajectory makes it a strong buy for traders looking to capitalize on the bullish momentum.
Share Price Catalysts:
- Breakout above key resistance levels.
- Continued strength in technical indicators.
- Positive market sentiment towards healthcare stocks.Thank you
