Date of Report: October 2, 2024
Broker: CGS International
Company Overview
Cahya Mata Sarawak Berhad is a diversified company based in Malaysia. The company is involved in the manufacturing of building materials and providing construction services. It also produces cement, steel wire, mesh, and pipes. Additionally, Cahya Mata Sarawak operates in water distribution infrastructure, develops and markets software for the insurance and healthcare industries, and distributes water treatment chemicals and equipment parts.
Technical Analysis
As of October 2, 2024, Cahya Mata Sarawak has been forming a triangle consolidation pattern since reaching its 52-week high in mid-July. The overall trend remains upward, supported by a rising 200-day Exponential Moving Average (EMA). The stock has found support at the 50-day EMA in recent days, forming a 3-day reversal pattern, which indicates potential for further upward movement.
Momentum Indicators
The Moving Average Convergence Divergence (MACD) has shown easing pressure, while the Relative Strength Index (RSI) has turned upwards again. These indicators suggest that bullish momentum may be returning, signaling the possibility of a price breakout in the near future.
Entry Points and Targets
- Entry Price: 1.36-1.41
- Support Levels: Support 1 at 1.29, Support 2 at 1.20
- Resistance Levels: Resistance 1 at 1.50, Resistance 2 at 1.56
- Stop Loss: 1.28
Investment Strategy
The report recommends that aggressive traders consider entering a long position at current price levels or on price weakness, with a stop-loss set at RM1.28. On the upside, the stock has the potential to test historical resistance levels at RM1.50 and RM1.56 if the breakout occurs, making it an attractive opportunity for short-term traders.
Conclusion
Cahya Mata Sarawak is showing signs of a potential breakout from its triangle consolidation pattern. With support from key technical indicators and a favorable chart setup, the stock could see further gains in the coming days, particularly for investors willing to take on short-term positions.
