Date: October 21, 2024
Broker: CGS International Securities Malaysia Sdn. Bhd.

Company Overview

PLYTEC Holding Sdn. Bhd. operates as a holding company that, through its subsidiaries, offers digital design, production planning, and engineering solutions. The company also engages in the trading and distribution of general building materials for construction purposes, serving a diverse customer base in Malaysia.

Recent Stock Performance

• Last Price: RM 0.34
• The stock recently showed a strong performance, forming a long white candle on Friday. This move broke through the resistance of a 2-month old consolidating triangle, indicating a breakout. The breakout was also significant as it occurred above the 200-day EMA, which is considered a positive technical indicator.

Technical Analysis

• Entry Price: RM 0.32 – RM 0.34
• Support Levels:
  • Support 1: RM 0.31
  • Support 2: RM 0.30
• Stop Loss: RM 0.305 (a tick below Friday’s low)
• Resistance Levels:
  • Resistance 1: RM 0.385
  • Resistance 2: RM 0.41
• Target Prices: RM 0.385, RM 0.41

Momentum Indicators

• MACD & RSI: The Moving Average Convergence Divergence (MACD) has moved back into positive territory, signaling that the stock’s momentum is strengthening. The Relative Strength Index (RSI) has also sharply increased, suggesting that the bulls are gaining momentum and may continue pushing the price higher.

Trading Recommendation

Aggressive traders are encouraged to consider entering a long position at the current price or on potential dips. The report suggests a stop-loss level of RM 0.305 to manage downside risk. The upside targets include RM 0.385 and RM 0.41, which are levels where the stock might encounter historical resistance.

Conclusion

The recent breakout and improved momentum indicators suggest that PLYTEC Holding is poised for a potential upward movement. The combination of technical signals and a positive breakout makes it an attractive option for traders looking to capitalize on emerging trends.