Date of Report
September 30, 2024
Broker Name
CGS International Securities
Company Overview
Malaysia Smelting Corporation Berhad (MSC) is engaged in smelting tin concentrates and tin-bearing materials. The company also produces refined tin metal and by-products. Through its subsidiaries, MSC provides authorized warehouse services for tin metal.
Stock Performance and Technical Analysis
As of September 30, 2024, MSC’s last trading price was RM2.52. The stock showed a resurgence in buying interest, breaking out of a four-month long triangle pattern on the back of a white bullish candle. The price also crossed the RM2.48 support-turned-resistance level, closing above all key Exponential Moving Averages (EMAs) for the first time since mid-July 2024.
This technical breakout is supported by a surge in trading volume, indicating a possible resurgence in bullish sentiment. The stock’s Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) also suggest a pickup in bullish momentum.
Key Support and Resistance Levels
- Entry Price(s): RM2.40 – RM2.52
- Support Levels: RM2.30 (Support 1), RM2.04 (Support 2)
- Stop Loss Level: RM2.29
- Resistance Levels: RM2.66 (Resistance 1), RM2.80 (Resistance 2)
- Price Targets: RM2.66, RM2.80
Investment Insights
Aggressive traders are advised to consider going long on MSC, particularly on weakness. The recommended stop-loss is set at RM2.29. On the upside, prices could push higher towards the historical resistance levels of RM2.66 and RM2.80, with potential gains driven by increased investor interest and strong technical signals.
Technical Indicators
- EMAs: MSC’s price closed above the 20-period, 50-period, and 200-period EMAs, signaling a bullish breakout.
- MACD: The MACD has hooked higher, indicating strengthening bullish momentum.
- RSI: The RSI also reflects positive momentum, further supporting the upward price movement.
Conclusion
Malaysia Smelting Corporation’s technical breakout and resurgence in buying interest signal strong upside potential. With key indicators pointing to continued bullish momentum, MSC is positioned for higher price targets, with aggressive traders advised to watch the stock closely for further gains.
