Date: October 11, 2024
Broker: CGS International
Overview of Cloudpoint Technology
Cloudpoint Technology Bhd operates as an investment holding company, focusing on IT solutions. Through its subsidiaries, the company provides a range of services, including data-center networking, cybersecurity, servers, storage, and data management. Additionally, Cloudpoint offers hybrid IT solutions, catering to a diverse client base worldwide.
Recent Stock Performance
As of the report on October 11, 2024, Cloudpoint Technology’s stock price was at RM0.885. The stock has shown resilience in maintaining a short-term uptrend, indicating potential for further gains.
Technical Buy Recommendation
The report reiterates a Technical Buy for Cloudpoint Technology, citing the ongoing strength in the stock’s uptrend. The stock price has surpassed key resistance levels, supported by rising trading volumes and bullish technical indicators.
- Entry Price Range: RM0.86 to RM0.885
- Stop Loss Level: RM0.815
- Target Price 1: RM0.96
- Target Price 2: RM1.00
Key Technical Indicators
Several technical indicators suggest that Cloudpoint’s upward momentum is intact:
- Golden Cross Formation: The 20-day Exponential Moving Average (EMA) has crossed over the 50-day EMA, signifying a bullish signal.
- MACD and RSI Strength: Both the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) indicators have strengthened, confirming growing buying momentum.
Trading Strategy
The report suggests that aggressive traders may consider entering long positions in Cloudpoint Technology either at current prices or on price weakness. A stop-loss should be placed at RM0.815, a tick below the 3-day low, to manage risk effectively.
Upside Potential
The stock is projected to test historical resistance levels at RM0.96 and RM1.00. If the current uptrend holds, these targets are likely achievable in the short term, providing a compelling case for potential upside gains.
Conclusion
With positive technical signals and a favorable entry price range, Cloudpoint Technology presents an opportunity for traders looking for short-term growth. The technical setup, coupled with the bullish outlook, supports the case for continued price appreciation in the near term.
