Solarvest Holdings’ stock formed its second consecutive hammer-like candle yesterday, pushing further away from the 20-day exponential moving average (EMA).
“With prices building a base above the previous high formed in February, we reckon that the stock is about ripe for the next leg up. A breakout above the RM1.31 level on a close basis is likely to indicate that the next move higher is underway,” said CGSCIMB in the recent Malaysia Retail Research Report.
CGSCIMB reiterates their Technical Buy call on the stock. The Moving Average Convergence Divergence (MACD) is about to confirm its golden cross while the Relative Strength Index (RSI) has stayed above the 50pts level. Both indicators suggest that the bulls still have the upper hand in the near-term.
“We think that aggressive traders may want to go long now or accumulate on a pullback, with a stop-loss set at RM1.22,” said CGSCIMB.
Towards Pekat Group, the stock rose and broke out of its 2-week triangle pattern yesterday with a white bullish candle. Prices closed at its 2.5-week high backed by a sharp pick up in trading volume.
The current breakout move also sent prices back above the 200-day EMA, indicating that the medium-term trend may be turning positive again.
Higher prices beckon for the stock. Both the MACD and RSI are strengthening again, indicating that the bulls are regaining momentum after the recent pause. CGSCIMB suggests aggressive traders to go long now or accumulate on a pullback, with a stop-loss set at RM0.43.
