Technical Commentary

Goodway has retreated near the RM0.54 level after experiencing a consolidation breakout above the RM0.51 level on 22nd July. Over the past two trading weeks, its price has been hovering sideways between the RM0.48-RM0.50 levels. The MACD Line has turned flattish below zero, while the RSI is hovering below 50. Monitor for a breakout above the RM0.50 level.

Strategy

Traders could initiate a buy strategy upon the breakout of the RM0.50 level. Price may rally towards the target of the RM0.575 - RM0.60 levels. Meanwhile, traders may cut loss if the price violates below the RM0.48 level.

Stock Information

Goodway is involved in the following businesses:

(a) Rubber compounds - Manufacture and distribution of rubber compounds and related products, which is the main revenue contributor to the Group

(b) Retreading services - Retreading of tyres for motor vehicles, earthmovers and trading of tyres related products.

(c) Trading - Retailing and wholesale of natural rubber and other related goods.

Source: MalaccaSecurities Research - 19 Aug 2014