Date: September 20, 2024
Broker Name: CGS International Securities Malaysia Sdn. Bhd.

Company Overview

Gamuda Berhad is an investment holding and civil engineering construction company. Through its subsidiaries, Gamuda is involved in several key operations, including earthwork construction, manufacturing and supplying road surfacing materials, and operating quarry and road-laying projects. The company is also engaged in the hiring and rental of plant and machinery, property development, and the manufacturing and selling of paper.

Technical Buy Recommendation

Gamuda is currently recommended as a technical buy, with a stock price of RM8.15 as of the report date. The recommendation is based on a strong technical analysis, indicating the potential for the stock to reach new highs.

Entry Price and Targets

• Entry Price: RM7.90 to RM8.15
• Stop Loss: RM7.40
• Resistance Levels:
  • Resistance 1: RM8.38
  • Resistance 2: RM8.74
• Target Price:
  • RM8.74 (Fibonacci target of 1.236x)
  • RM9.00 (Fibonacci target of 1.382x)

Stock Performance and Outlook

The stock has continued to climb following a breakout of its triangle pattern observed a few days before the report. Gamuda is close to its all-time closing high of RM8.17, with indicators suggesting further upside. The rising EMAs (Exponential Moving Averages) support the forecast for a continued positive trend, with potential new highs in the coming days.

Momentum Indicators

• Moving Average Convergence Divergence (MACD): The MACD has hooked higher, signaling an increase in bullish momentum.
• Relative Strength Index (RSI): The RSI has also turned upward, further indicating the strengthening bullish momentum.

Trading Strategy

Aggressive traders are advised to consider going long at the current price or during any periods of weakness, with a recommended stop-loss set at RM7.40, slightly below the 50-day EMA. The upside potential is considered strong, and traders can aim for the Fibonacci targets of RM8.74 and RM9.00.