Report Date: October 22, 2024
Broker: CGS International

Overview

Bahvest Resources Berhad is a marine aquaculture company. It engages in fish breeding, hatchery, and rearing operations, serving customers worldwide. The company is focused on sustainable practices within the aquaculture industry.

Technical Analysis Summary

Bahvest Resources appears to have established a support base at the RM0.705 level after consolidating from its 52-week high. Recently, the stock price experienced an increase, forming a white candle, which was accompanied by a rise in trading volume. The current trend suggests that the stock could see further upside potential, supported by rising Exponential Moving Averages (EMAs).

Key Technical Indicators

• Moving Averages: The 20-day, 50-day, and 200-day EMAs are currently trending upwards, indicating a bullish sentiment. The rising EMAs are providing a foundation for potential price gains.
• MACD & RSI: The Moving Average Convergence Divergence (MACD) indicator shows a reduction in selling pressure, while the Relative Strength Index (RSI) has hooked up, signaling a renewed buying interest. These indicators suggest that the stock may be preparing for further advances.

Recommended Trading Strategy

The analysts suggest that traders who are aggressive may consider entering long positions at the current price levels or on dips, with a stop-loss positioned at RM0.725 to limit potential losses. If the bullish trend continues, the stock is expected to retest its historical resistance levels.

Entry, Stop-Loss, and Target Levels

• Entry Price: RM0.765 – RM0.78
• Stop-Loss: RM0.725
• Resistance Levels: RM0.81, RM0.845
• Support Levels: RM0.73, RM0.705

Analyst Commentary

The analysis by CGS International’s Lee Ching Poh and Kong Seh Siang highlights the technical strength of Bahvest Resources. They noted that the increase in trading volume and supportive EMAs indicate positive momentum. The MACD and RSI improvements point towards potential gains, suggesting that Bahvest Resources may be gearing up for an upward move to test its historical resistance levels.