Date: September 23, 2024
Broker: CGS International Securities Malaysia Sdn. Bhd.
Company Overview
IJM Corporation Berhad is an investment holding company involved in a variety of sectors. It provides construction services and operates in property development, quarrying, manufacturing and selling premix products, oil palm cultivation, and education services through its subsidiaries.
Technical Analysis and Stock Performance
- Stock Code: 3336
- Last Price (as of September 23, 2024): RM3.21
- Entry Price Range: RM3.15 – RM3.21
- Support Levels:
- Support 1: RM2.88
- Support 2: RM2.80
- Resistance Levels:
- Resistance 1: RM3.40
- Resistance 2: RM3.62
- Target Price: RM3.40, RM3.62
- Stop Loss Level: RM2.92
IJM Corporation’s stock recently broke out of a two-month long falling wedge pattern, a significant technical indicator that suggests a potential bullish trend. The breakout was confirmed by the stock’s movement above both its 20-day and 50-day Exponential Moving Averages (EMA), accompanied by a strong white bullish candle and increased trading volume.
The Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) indicators have both turned upward, signaling that bullish momentum is building. Traders are encouraged to go long, with a stop-loss placed at RM2.92. The stock is expected to test historical resistance levels at RM3.40 and RM3.62.
Investment Strategy
The technical breakout, combined with positive momentum indicators, presents a buying opportunity for aggressive traders. The stock appears to be resuming its uptrend and offers the potential for significant upside. Investors should watch for any further movements towards the identified resistance levels, with the understanding that a drop below RM2.92 would trigger a sell signal.
