Review on trading Ideas by Maybank Investment Bank: $WCEHB / 3565 (WCE HOLDINGS BERHAD) & $ $AME / 5293 (AME ELITE CONSORTIUM BERHAD)

1. WCE holdings

WCE stocks have been on a steady rise since November 2022, with an impressive increase of 242.97% up to the present. The subsequent correction, however, proved to be relatively mild, as the downside was contained within the "Ichimoku Cloud." This suggests that the long-term uptrend remains intact and provides a reassuring sign for investors.

Furthermore, yesterday's breakout above the "Kijun" line is a strong indicator of a continuation of the previous uptrend. This reaffirms the recommendation to BUY with an even higher target in mind.

For those considering a position in this stock, the suggested buying range is between 0.775 and 0.785. To manage risk, a stop loss should be placed below 0.725, with the reference point being the lowest price observed on October 23rd. Additionally, an estimated resistance level between 0.880 and 0.995 has been identified based on trendline resistance.

By adhering to this trading strategy, investors have the potential to achieve a risk-return ratio of 2.1x, which is quite favorable, particularly for short-term trading.

2. AME Elite Consortium

The correction in this stock recently came to an end when the EMA-200 line was decisively broken, followed by a successful rebound on October 20th. This breakout marked a significant shift in the overall sentiment, turning it back to bullish. The MACD and RSI indicators also support this bullish outlook, indicating the presence of momentum. As a result, analysts are anticipating that the stock will continue to trade higher.

The recommended buying range for this stock is between RM1.48 and RM1.50, with a stop loss set at RM1.40. The stop loss is based on the support line formed by the lowest price on October 23rd. Additionally, there is an estimated resistance level, possibly suggested by historical resistance levels in June and July 2023. This trade setup offers a favorable risk-return ratio of 2.67x, which is notably better than the risk-return ratio of WCE Holdings.