Date: September 25, 2024
Broker: CGS-CIMB Securities Malaysia
Company Overview
HPP Holdings Berhad is a Malaysia-based company that specializes in manufacturing paper-based packaging solutions. Their product offerings include corrugated and non-corrugated packaging, as well as brochures, leaflets, labels, and paper bags. The company serves various industries with its packaging products.
Technical Buy Signal
On September 25, 2024, CGS-CIMB issued a “Technical Buy” recommendation for HPP Holdings as the stock reached a 2-year high. The stock showed strong upward momentum and closed at RM0.435, breaking past previous resistance levels with a bullish candle formation.
Key Price Levels
- Entry Price Range: RM0.42 to RM0.435
- Stop Loss: RM0.395
- Support Levels: RM0.40 and RM0.365
- Resistance Levels: RM0.465 and RM0.48
- Target Price: RM0.465 and RM0.48
Technical Analysis
The stock reached a new 52-week high with strong volume, signaling a potential for further gains. The bullish breakout came with the stock closing at its 2-year high, which indicates growing buying interest. The technical indicators, such as Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI), suggest that the bullish momentum is continuing, with both indicators showing signs of strength.
The 200-period, 50-period, and 20-period Exponential Moving Averages (EMA) are trending higher, further supporting the upward movement. The technical breakout above key resistance levels positions the stock for potential further gains in the near term.
Analyst Recommendation
Aggressive traders are encouraged to take a position in HPP Holdings at the current level or on any pullback, with a strict stop-loss set at RM0.395. On the upside, prices are expected to test the Fibonacci targets of RM0.465 and RM0.48, as the stock continues its bullish run.
