Date: October 22, 2024
Broker: CGS International

Company Overview

RCE Capital Berhad is an investment holding company that offers management services. Through its subsidiaries, the company invests in various sectors, including property, information technology, financial administration, loan financing, broadcasting, and advertising media services. RCE Capital is also involved in general trading, licensing, and merchandising activities.

Technical Analysis

• Current Price: RM 1.65
• Entry Price Range: RM 1.60 – 1.65
• Support Levels:
  • Support 1: RM 1.51
  • Support 2: RM 1.47
• Resistance Levels:
  • Resistance 1: RM 1.73
  • Resistance 2: RM 1.83
• Stop Loss: RM 1.50
• Target Prices: RM 1.73, RM 1.83, RM 1.89

Recent Performance and Indicators

The stock showed a notable performance by extending its gains after surpassing the 20-day and 50-day Exponential Moving Averages (EMAs) last Thursday. Higher trading volume was recorded, pushing prices to a 3-week high. The structure of higher highs and higher lows from the RM1.47 low remains intact, signaling potential upward momentum.

Technical Indicators

• Moving Averages: The improving 200-day EMA supports the potential for further price increases.
• MACD (Moving Average Convergence Divergence): Strengthened further, indicating rising buying momentum.
• RSI (Relative Strength Index): Also showed an increase, suggesting a rise in buying interest.

Strategic Analysis

The analysis suggests that aggressive traders may consider going long on RCE Capital at current prices or on any dip, with a stop-loss set at RM 1.50. The bullish outlook projects potential upward movement, with historical resistance at RM 1.73. Further Fibonacci targets are projected at RM 1.83 (1.382x) and RM 1.89 (1.618x), showing opportunities for profit in the near to mid-term.

Analyst Remarks

The positive technical indicators and consistent trading patterns suggest that RCE Capital is positioned for potential growth. The strengthening MACD and RSI, along with supportive EMAs, point to a favorable trend for traders and investors.