Karex (5247) – Technical Buy
The stock rose and broke out of its week-long triangle pattern yesterday (Feb 6) with a long white candle. The strong close also supplements its flag breakout that happened two weeks ago which is another positive. The higher highs and higher lows sequence from the RM0.50 low, and coupled with a higher trading volume, suggest that there is likely a continuing buying interest on the stock.
CGSCIMB Retail Research note said today (Feb 7) that both the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) continued to nudge higher. Both indicators support the view that the near-term outlook is positive.
CGSCIMB thinks that aggressive traders may want to go long now with a stop-loss set at RM0.745 (a few ticks below the 20-day EMA). Follow-through buying may lift prices up to test the historical resistances at RM0.87 and RM0.90 next. RM0.935 is the following resistance.
TMC Life Sciences (0101) – Technical Buy
The stock climbed and closed at its 34-month high (since March 2021) yesterday (on a close basis) with a white Marubozu candle. Higher trading volume flocked in and pushed prices away from the 20-day EMA.
CGSCIMB said with the strong close above the RM0.75 resistance yesterday, and coupled with the higher lows structure from the RM0.535 low, the stock is likely to aim for new highs in the near term.
The Moving Average Convergence Divergence (MACD) just confirmed its golden cross while the Relative Strength Index (RSI) strengthened further, signalling that the buying momentum is gaining strength in the near-term.
CGSCIMB thinks that aggressive traders may want to go long here or on weakness with a stop-loss set at RM0.695 (one tick below the 50-day EMA). On the upside, prices may continue to work their way higher to test the RM0.80 psychological level and our Fibonacci target at RM0.84 (1.382) next.
