I got some thoughts on technical research by Maybank Investment Bank:
*while reading you may refer to the pictures below as your reference.
$HUPSENG / 5024 (HUP SENG INDUSTRIES BERHAD)
Key takeaways:
1. RSI Breakout upward, indicating rising momentum.
2. The market price breaks above SMA-88 and able to maintain above the indicator.
3. The stock formed a new higher low before continuing its bullish trend.
https://cutt.ly/WwEurNzW Range: 0.695 – 0.705; Stop loss: 0.665; Estimated resistance: 0.745(r1) & 0.805(r2).
Maybank's estimated target for both loss and profit (r1) results in a risk/reward ratio of only 1.67x, which falls below the typical minimum acceptable ratio for traders, which is usually above 2x. However, traders may consider following Maybank's suggested spot stop loss and resistance levels in this stock, as it most likely comes from considering the recent gap up for the stop loss target and the last lower high formed on May 2-5 for the r1 level.
$PIE / 7095 (P.I.E. INDUSTRIAL BERHAD)
Key Takeaways:
1. After Maybank’s BUY on 7th September, the stock gained 10.1% to peak at 3.25 on 18th October.
2. The down was also capped at the SMA-88
3. Buy range: 3.06 – 3.08; stop loss 2.87; Estimated Resistance: 3.25(r1) & 3.55(r2)
The risk-reward ratio for this stock is even worse than that of HUP SENG, standing at 0.9x. Instead of buying the price in the range of 3.06-3.08, we may consider purchasing it in the range of 3.02 while waiting for the price to approach the support indicated by the EMA 50 or even wait for a price drop near the trend line support in the 2.96-3.00 range. This would result in a risk-reward ratio of 2.7-3.5x, following the stop loss and resistance levels estimated by Maybank.
$KSL / 5038 (KSL HOLDINGS BERHAD)
Key Takeaways
1. The downtrend channel is likely at the tail’s end as the stock staged a reversal move within the 50-day EMA line and the 61.8% FR level in early October 23.
2. Same as Hup Seng Industries, the RSI indicators show an upward breakout, suggesting rising momentum.
3. Buy Range: 1.09-1.11; stop loss: 1.01; estimated resistance: 1.21(r1) &1.35(r2)
In my opinion, the target resistance at 1.21 does seem reasonable because Maybank might be referring to the highest price on September 1, 2023. However, unfortunately, there is a strong trendline resistance that, in my view, the stock price needs to break through before it can reach the next resistance level at 1.21. Therefore, I believe we may need to wait for the stock price to break out above the resistance at 1.13-1.14. Only then, we can follow our respective trading plans to make it even safer.
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