Date: October 21, 2024
Broker: CGS International Securities Malaysia Sdn. Bhd.

Company Overview

Southern Cable Group Berhad is a manufacturer specializing in customized cables and wires. Its products are widely used across various sectors including power distribution and transmission, building and construction, infrastructure, telecommunications, manufacturing units, oil and gas processing industries, and petrochemical plants. The company serves customers worldwide, ensuring broad market reach.

Recent Stock Performance

• Last Price: RM 0.87
• The stock recently closed at a new 3-week high, marking a strong performance with a white Marubozu candle.
• This indicates a breakout from a 3.5-month old consolidation triangle, suggesting the consolidation phase has ended and a new uptrend may be starting.

Technical Analysis

• Entry Price: RM 0.85 – RM 0.87
• Support Levels:
  • Support 1: RM 0.825
  • Support 2: RM 0.795
• Stop Loss: RM 0.82 (a tick below the last swing low)
• Resistance Levels:
  • Resistance 1: RM 0.91
  • Resistance 2: RM 0.95
• Target Prices: RM 0.91, RM 0.95

Momentum Indicators

• MACD & RSI: Both indicators have strengthened, signaling rising buying momentum. This suggests that the stock may continue to rise as aggressive traders look to capitalize on this trend.

Trading Recommendation

The report suggests that aggressive traders may consider entering a long position at current levels or on potential dips. A stop-loss at RM 0.82 provides a safety measure, while potential upside targets include RM 0.91 and RM 0.95, reflecting historical resistance levels that the stock might aim to retest.

Conclusion

Southern Cable Group’s recent performance indicates a bullish sentiment. The breakout from consolidation and positive momentum indicators point to a potential uptrend, making it an appealing opportunity for traders looking to benefit from technical buy signals.