Date of Report: October 1, 2024
Broker: CGS-CIMB Securities Malaysia Sdn. Bhd.
Company Overview
Tomei Consolidated Bhd. is an investment holding company that, through its subsidiaries, engages in the design, manufacturing, and retailing of jewelry. Additionally, the company is involved in refining gold and silver. It is a well-established player in the jewelry industry in Malaysia, with a strong market presence and extensive distribution channels.
Technical Overview
As of October 1, 2024, the stock price of Tomei Consolidated is RM1.86. The stock has been in a consolidation phase since reaching its all-time high in May 2024. The stock’s movements form a triangle pattern, which is typically indicative of a potential breakout. The current consolidation is taking place above the 200-day Exponential Moving Average (EMA), which suggests that the long-term trend remains bullish. Technical indicators, such as the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI), are still in a consolidation phase, indicating that some sideways movement may continue before the breakout occurs.
Entry and Stop-Loss Recommendations
Aggressive traders are advised to consider entering a long position in Tomei Consolidated at RM1.80-RM1.86. A tight stop-loss should be placed at RM1.75, just below the last swing low. This strategy allows traders to potentially capitalize on an upward breakout while minimizing risk.
Price Targets and Resistance Levels
The immediate resistance level for Tomei Consolidated is RM2.00, which, if breached, could lead to a stronger bullish move. The next resistance levels are RM2.13 and RM2.25, with the latter being a Fibonacci target (1.236x). These levels are expected to act as price targets for the coming weeks if the stock successfully breaks out of its consolidation.
Support Levels
Key support levels to monitor are RM1.76 and RM1.69. The stop-loss level is set slightly below the first support at RM1.75, providing a cushion against downside risks.
Conclusion
The overall technical outlook for Tomei Consolidated suggests that the stock is nearing the end of its consolidation phase and could soon experience a breakout to the upside. Traders are advised to monitor the RM2.00 resistance level closely and consider entering a position with a stop-loss at RM1.75 to manage risk effectively.
