CGSCIMB in the recent Malaysia Retail Research pointed out two stocks, PRG Holding and Hextar Global as viable long term buys. PRG Holding stocks rose and formed a white bullish candle yesterday, with prices bouncing off the 20-day Exponential Moving Average again. The white candle also broke out of the downtrend line from its 52-week high on rising trading volume.
More upside is likely to follow after the said breakout, underpinned by the higher lows sequence from the RM0.13. Both the Moving Average Convergence Divergence and Relative Strength Index have strengthened further, which are supportive of the current breakout move.
“We think that aggressive traders may want to go long now or accumulate on a pullback, with a stop-loss set at RM0.20. This breakout move may see prices climb towards the historical resistance of RM0.245 and RM0.265 next,” said CGSCIMB.
Hextar Global stocks also surged and closed at its all-time historical high yesterday, surpassing CGSCIMB’s second target. The stock’s uptrend is supported by improving Exponential Moving Averages and a higher trading volume.
“More upside may follow in the near term. CGSCIMB reiterates their Technical Buy call on the stock. Both the Moving Average Convergence Divergence and Relative Strength Index have hooked up further, indicating that the buying momentum is picking up,” said CGSCIMB.
Similar to PRG Holding, CGSCIMB believes aggressive traders may want to go long now or accumulate on a pullback, with a stop-loss set at RM0.785. Follow-through buying may lift prices to test RM0.95 and the RM1.00 psychological level next.
