MGB (7595) – Technical Buy
The stock surged and closed at its 5-month high (on a close basis) last Friday with a long white candle. The breakout above the downtrend line from the RM0.795 high was supported by a spike in trading volume (5.2x higher than its 15-day moving average) which indicates a strong buying interest.
With prices closing above all the EMAs, a new short-term uptrend may be taking place right now, CGSCIMB said in a note today (Feb 13).
The Moving Average Convergence Divergence (MACD) just confirmed its golden cross while the Relative Strength Index (RSI) appear to have turned higher again.
Both indicators support the view that the buyers may be gaining strength.
CGSCIMB thinks that aggressive traders may want to go long now with a stop-loss set at RM0.65 (one tick below the 20-day EMA and last Friday’s low). Follow-through buying may lift prices to test the historical resistances at RM0.77, RM0.795 and RM0.83 next.
MGB Berhad operates as a building sub-contractor. The Company offers designing, building, construction, engineering, project management, and geotechnical services.
Solarvest Holdings (0215) – Technical Buy
The stock rose and broke out of its 2-week long triangle pattern with a white bullish candle last Friday. Higher trading volume also sent prices up to close at its 32-month high (on a close basis).
The improving EMAs, and coupled with the higher highs and higher lows formation from the RM1.18 low are supportive for further upside ahead.
Both the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) have strengthened further, signalling that near-term outlook is getting brighter.
CGSCIMB thinks that aggressive traders may want to go long here or on weakness with a stop-loss set at RM1.36 (two ticks below the 20-day EMA). On the upside, this breakout may lift prices up to test the historical resistances at RM1.52 and RM1.59 next.
Solarvest Holdings Berhad operates as a holding company. The Company, through its subsidiaries, provides engineering, procurement, construction, commissioning, management, and operation and maintenance services for solar projects.
