Date of Report: 26 September 2024
Broker: UOB Kay Hian

Overview

Venture Corp (VMS SP) has been given a Trading Sell recommendation in the report, with a sell range between S$13.87 to S$13.89. The last traded price for the stock is S$13.81, and the target price is set at S$12.61, indicating a potential downside.

Bearish Trend

The stock is currently trading below the cloud, which signals a bearish market outlook. The overall trend is negative, and further price declines are anticipated.

Bearish Indicators

A bearish crossover of the conversion and base lines has been identified, reinforcing the likelihood of a downward price movement. Additionally, the MACD (Moving Average Convergence Divergence) indicator is also turning bearish, suggesting that selling pressure could increase.

Price Target and Stop-Loss Strategy

The target price is set at S$12.61, and the report advises placing a protective stop at S$14.24. This stop-loss strategy helps traders minimize potential losses should the stock price move against the recommended sell position.

Timeframe

The estimated timeframe for Venture Corp’s stock to reach the target price is approximately 1-2 weeks, provided that the stock enters the recommended sell range within three trading days.

Institutional Research Insight

Despite the bearish technical outlook, UOB Kay Hian’s institutional research team maintains a fundamental BUY rating on Venture Corp with a higher target price of S$16.17 in the long term, indicating confidence in the company’s fundamentals despite the short-term bearish trend.