Bahvest Resources (0098) – Rectangle Breakout with Strong Momentum

Recommendation: BUY
Target Prices: RM 0.575, RM 0.610
Stop Loss: RM 0.480
Entry Prices: RM 0.500 – RM 0.535
Broker: CGS-CIMB Securities
Date of Recommendation: 6th September 2024

Investment Thesis: Bahvest Resources – Riding the Breakout Wave

Bahvest Resources is showing strong technical momentum following a rectangle breakout pattern, signaling a potential for further price appreciation. The stock’s trading volume has surged to levels 4.3x higher than its 15-day moving average, reflecting growing interest from investors.

• Technical Breakout:
  The stock surged and tested the RM 0.535 resistance level, closing at its 1.5-month high. With both the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) turning up, Bahvest is positioned for more upside in the near term.
• Key Support and Resistance Levels:
  Support levels are set at RM 0.485 and RM 0.445, while resistance is seen at RM 0.575 and RM 0.610, indicating strong potential for price appreciation.

Valuation and Financials:
With a technical breakout and increasing investor interest, Bahvest Resources is poised for further gains. The stock offers attractive entry points at RM 0.500 to RM 0.535, with target prices ranging up to RM 0.610.

Share Price Catalysts:

• Strong technical momentum and breakout pattern.
• Increased investor interest, reflected in higher trading volume.

  Thank you