Date of Report: October 2, 2024
Broker: CGS International
Company Overview
Econpile Holdings Bhd is a specialist foundation and civil engineering contractor in Malaysia. The company provides services that include foundation and geotechnical works, civil engineering works, structural works, and design and build packages.
Technical Analysis
As of October 2, 2024, Econpile Holdings’ stock has seen a rise in price, breaking out of the downtrend line from the 52-week high. This movement was highlighted by a white candle formation, suggesting potential for further gains. A notable golden cross of the 20-day over the 50-day Exponential Moving Averages (EMAs) signals that a short-term uptrend may have begun.
Momentum Indicators
Key indicators such as the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) have strengthened. This is seen as a clear sign of increasing buying momentum, signaling that the stock could experience further price advances in the near term.
Entry Points and Targets
- Entry Price: 0.46-0.47
- Support Levels: Support 1 at 0.44, Support 2 at 0.36
- Resistance Levels: Resistance 1 at 0.50, Resistance 2 at 0.525
- Stop Loss: 0.435
Investment Strategy
The report suggests that aggressive traders may consider going long on Econpile Holdings at the current price levels or on price weakness. With a stop-loss set at RM0.435 (just below the 50-day EMA), there is potential for gains if the stock continues its upward trajectory. The target prices for potential profit-taking are RM0.50 and RM0.525.
Conclusion
The stock’s technical indicators and recent performance suggest the possibility of further upward movement, especially for short-term investors. The pick-up in buying momentum combined with strengthened momentum indicators makes Econpile Holdings an attractive buy for traders looking to capitalize on its current trend.
