Icon Offshore (5255) rose and broke out of its triangle pattern from the 52-week high yesterday (Jan 4) with a long white candle. Higher trading volume also sent prices up to close above the 20-day EMA.
CGSCIMB, in a note today (Jan 5), said the higher highs and higher lows sequence from the RM0.275 low, and coupled with the improving EMAs, more upside is on the cards in the near term.
The Moving Average Convergence Divergence (MACD) just confirmed its golden cross while the Relative Strength Index (RSI) has strengthened further. Both indicators are supportive for a brighter short-term outlook.
CGSCIMB thinks that aggressive traders may want to go long now with a stop-loss set at RM0.555 (one tick below its last swing low). Follow-through buying may lift prices up to test its historical resistances at RM0.675 and the RM0.695 next with RM0.75 being the following resistance.
CGSCIMB issued a Technical Buy call on the stock.
Icon Offshore Berhad provides oilfield services. The Company specialises in offshore marine solutions that support the upstream oil and gas industries with clients in Malaysia and Southeast Asia.
Following suite, CGSCIMB issued a similar Technical Buy call on Hua Yang (5062) citing the stock extended its rally after the breakout of its 4-month long wedge pattern happened in late-December. Yesterday’s bullish gap up was accompanied by a white bullish candle. Coupled with the higher trading volume, the odds remain in favour the bulls in the coming days.
Both the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) continued to rise, signalling that the buying momentum is gaining strength in the near-term.
CGSCIMB said that they think aggressive traders may want to go long here or on weakness with a tight stop-loss set at RM0.27 (marginally below the 200-day EMA). The next wave up may see prices push on to test the historical resistances at RM0.345 and RM0.36 next.
Hua Yang Berhad is an investment holding company which develops property and provides secretarial services. Through its subsidiaries, the Company provides management services.
