Report Date: October 22, 2024
Broker: CGS International
Overview
RCE Capital Berhad is an investment holding company that provides a range of services, including management, property investment, information technology, financial administration, loan financing, broadcasting, and advertising media services. The company is also involved in general trading, licensing, and merchandising activities.
Technical Analysis Summary
The stock extended its gains after surpassing the 20-day and 50-day Exponential Moving Averages (EMAs) last Thursday. An increase in trading volume was observed, pushing the stock price to close at a three-week high. The consistent higher highs and higher lows structure from the RM1.47 low indicates that RCE Capital is positioned for further growth, with support from the improving 200-day EMA.
Key Technical Indicators
- Moving Averages: The stock has successfully crossed above the 20-day and 50-day EMAs, suggesting a bullish trend.
- MACD & RSI: Both indicators have shown signs of strengthening, indicating rising buying momentum. The MACD (Moving Average Convergence Divergence) is climbing, while the Relative Strength Index (RSI) has also improved, suggesting a positive sentiment among traders.
Recommended Trading Strategy
The report suggests that aggressive traders may consider going long at current levels or on any weakness. A stop-loss has been recommended at RM1.50 to mitigate potential downside risks. If the stock continues its upward trend, it is likely to test its historical resistance at RM1.73, with further Fibonacci targets set at RM1.83 (1.382x) and RM1.89 (1.618x).
Entry, Stop-Loss, and Target Levels
- Entry Price: RM1.60 – RM1.65
- Stop-Loss: RM1.50
- Resistance Levels: RM1.73, RM1.83, RM1.89
- Support Levels: RM1.51, RM1.47
Analyst Commentary
The analysts at CGS International, namely Lee Ching Poh and Kong Seh Siang, emphasized that the stock’s current trend and technical indicators point to further upside. They noted that RCE Capital’s steady climb above key moving averages and increasing trading volume are signs of robust market interest, suggesting that the stock may continue to propel higher.
