Date: September 18, 2024
Broker Name: CGS International Securities Malaysia Sdn. Bhd.
Company Overview
Leong Hup International Berhad is a poultry service provider that offers a variety of products and services, including breeding, egg production, broiler services, livestock feeding solutions, and the manufacture of chicken products. The company primarily serves customers across Asia.
Technical Analysis: Bullish Breakout
As of September 18, 2024, Leong Hup International has been marked as a “Technical Buy” with its last traded price at RM0.66. The stock broke out of a six-month-long triangle pattern, signaling a bullish breakout, and has closed at a three-week high, which indicates further potential for upward movement.
Entry Points and Support/Resistance Levels
The recommended entry price for Leong Hup International is between RM0.645 and RM0.66. Key technical levels to watch include:
- Support 1: RM0.605
- Support 2: RM0.565
- Stop Loss: RM0.60
- Resistance 1: RM0.70
- Resistance 2: RM0.73
Target Prices
The stock is expected to climb further, with targets set at RM0.70 and RM0.73.
Technical Indicators
Leong Hup International has displayed a strong technical breakout, marked by a white bullish candle that has lifted prices away from all the key Exponential Moving Averages (EMAs). The breakout was supported by a higher trading volume and a rising pattern of higher lows from the RM0.50 level.
The Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) have both hooked up again, signaling that bullish momentum is still in play.
Strategic Recommendations
Traders are advised to go long at current levels or wait for a slight dip, with a stop-loss set at RM0.60. On the upside, the stock is expected to test resistances at RM0.70 and RM0.73 in the near term.
Market Sentiment
Investor sentiment towards Leong Hup International is favorable, bolstered by the bullish technical signals and strong price action. The breakout from the long-standing triangle pattern suggests further upside potential in the coming days.
Conclusion
Leong Hup International’s recent bullish breakout, supported by technical indicators, presents a strong buying opportunity. Traders looking to capitalize on the ongoing upward momentum may consider entering at recommended levels, with clear targets and stop-losses in place.
