Date: September 20, 2024
Broker Name: CGS International Securities Malaysia Sdn. Bhd.

Company Overview

Deleum Berhad is an investment holding company that, through its subsidiaries, provides a wide range of products and services to the oil and gas industry. Its offerings include gas turbine technical services, exploration and production equipment, gas turbine packages, specialized products and services, and oilfield chemicals and services.

Technical Buy Recommendation

Deleum is recommended as a technical buy with a current stock price of RM1.46. The stock has recently broken out of a 3-week consolidation triangle, signaling a bullish trend. This breakout suggests the potential for the stock to achieve new highs in the coming weeks.

Entry Price and Targets

• Entry Price: RM1.40 to RM1.46
• Stop Loss: RM1.35
• Resistance Levels:
  • Resistance 1: RM1.49
  • Resistance 2: RM1.55
• Target Price:
  • RM1.55 (Fibonacci target of 1.382x)
  • RM1.60 (Fibonacci target of 1.618x)

Stock Performance and Outlook

Deleum’s recent performance indicates strong bullish momentum, as evidenced by the second white candle seen in the chart, which suggests that buyers are eager to drive the stock price higher. The stock is close to its 52-week high, with prices holding above all the key Exponential Moving Averages (EMAs).

Momentum Indicators

• Moving Average Convergence Divergence (MACD): The MACD has turned upward, reinforcing the bullish sentiment.
• Relative Strength Index (RSI): The RSI has also hooked up, indicating that the bulls remain in control.

Trading Strategy

For aggressive traders, it is advised to go long at the current price or during any temporary weakness. A stop-loss is suggested at RM1.35, just below the 20-day EMA. On the upside, traders should aim for the Fibonacci targets of RM1.55 and RM1.60, which present significant profit potential in the near term.