Date of Report: October 25, 2024
Broker: CGS International

Overview

Scientex Berhad is an investment holding company that engages in multiple sectors through its subsidiaries. The company manufactures a wide range of products, including polyvinyl chloride (PVC), polyurethane leather sheetings, packaging materials, bricks, and automotive parts. Besides manufacturing, Scientex is also involved in property investment, development, and leasing, as well as dealing in securities.

Stock Performance

On October 25, 2024, Scientex’s stock was identified as a “Technical Buy” with a last traded price of RM4.53. The stock has recently broken out to a new 52-week high, indicating a potential continued upward trend. Prices remain above all the rising Exponential Moving Averages (EMAs), suggesting sustained positive momentum.

Technical Indicators

• Entry Price Range: RM4.40 – RM4.53
• Support Levels:
  • Support 1: RM4.44
  • Support 2: RM4.25
• Stop Loss: RM4.24
• Resistance Levels:
  • Resistance 1: RM4.80
  • Resistance 2: RM5.00
• Target Prices: RM4.80, RM5.00

Analysis and Forecast

According to CGS International’s research, Scientex’s recent breakout and closing at a 52-week high indicate more potential upside. With prices currently trading above all rising EMAs, the stock is expected to continue its upward movement, riding on a current uptrend channel. Both the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) have shown further strengthening, reflecting a rise in buying momentum.

Aggressive traders may consider going long at the current price or on any pullback, with a suggested stop-loss set at RM4.24, just below the last swing low. On the upside, potential targets include RM4.80 (1.618x Fibonacci target) and the psychological level of RM5.00.

Analyst Commentary

The report highlights that Scientex’s recent technical performance suggests a robust uptrend, with a breakout to new highs confirming the potential for further gains. The strengthened technical indicators, along with trading above key moving averages, imply that Scientex is well-positioned to benefit from continued positive momentum in the market.

Source: CGS International Trendspotter, October 25, 2024.