Date: September 23, 2024
Broker: CGS International Securities Malaysia Sdn. Bhd.

Company Overview

Karex Berhad is a Malaysian company primarily engaged in the manufacturing of condoms, lubricating jelly, and other medical devices such as catheters and probe covers.

Technical Analysis and Stock Performance

• Stock Code: 5247
• Last Price (as of September 23, 2024): RM0.865
• Entry Price Range: RM0.83 – RM0.865
• Support Levels:
  • Support 1: RM0.78
  • Support 2: RM0.715
• Resistance Levels:
  • Resistance 1: RM0.895
  • Resistance 2: RM0.96
• Target Price: RM0.895, RM0.96
• Stop Loss Level: RM0.775

After moving sideways for five months following a 52-week high, Karex saw a long white candle break out above its consolidation trend on September 23, 2024. This breakout was supported by increased trading volume. The stock’s 20-day EMA crossed above its 50-day EMA in a golden cross, further enhancing the bullish outlook.

The MACD and RSI indicators have turned upward, indicating that bullish momentum is picking up once again.

Investment Strategy

With the recent breakout and bullish technical indicators, Karex offers a promising buying opportunity. Aggressive traders are advised to go long, with a stop-loss set at RM0.775, just below the 200-day EMA. On the upside, the stock may test its previous high at RM0.895, with potential further gains reaching the Fibonacci target of RM0.96.