Date: October 22, 2024
Broker: CGS International

Overview

RCE Capital Berhad is an investment holding company that offers management services. Through its subsidiaries, the company invests in various sectors, including property, IT, financial administration, loan financing, broadcasting, and advertising media services. RCE Capital also engages in general trading, licensing, and merchandising activities.

Current Stock Performance

• Last Price: RM 1.65
• Entry Price Range: RM 1.60 – RM 1.65
• Support Levels:
  • Support 1: RM 1.51
  • Support 2: RM 1.47
• Resistance Levels:
  • Resistance 1: RM 1.73
  • Resistance 2: RM 1.83
• Stop Loss: RM 1.50
• Target Prices: RM 1.73, RM 1.83, RM 1.89

Technical Analysis

The stock has extended its gains after surpassing the 20-day and 50-day exponential moving averages (EMAs) on the previous Thursday. Higher trading volume was observed, pushing the stock to a 3-week high. The upward trend is supported by a pattern of higher highs and higher lows, beginning from the low of RM 1.47.

The improving 200-day EMA suggests continued support for this uptrend. Additionally, key indicators such as the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) have shown strengthening, indicating a rise in buying momentum.

Trading Strategy

Aggressive traders are advised to consider a long position at current prices or on dips. Setting a stop loss at RM 1.50, traders can target a retest of historical resistance levels at RM 1.73. The next Fibonacci targets for the stock are at RM 1.83 (1.382x) and RM 1.89 (1.618x).

Analyst Comments

The analysis suggests that RCE Capital is poised to propel higher, supported by the alignment of key technical indicators and EMAs. The stock’s performance in recent days, coupled with rising trading volume, supports a bullish outlook.