Stock Market Enthusiast

SUNWAY: Buy on the Dip or Wait for the Breakout?

KingKKK
Publish date: Fri, 03 Jan 2025, 10:33 AM

Overall Technical Outlook:

Given the consistent uptrend, decent momentum indicators, and consolidation phase, I’d rate this setup as a Bullish Uptrend Retracement. It’s a good technical structure, but the lower volume and lack of immediate strength in RSI or MACD prevent it from ranking higher.

Strengths:

Clear bullish trend.

Supportive alignment of moving averages.

Potential for continuation after consolidation.

Weaknesses:

Reduced volume could delay breakout.

RSI isn't overly strong, signaling caution.

No immediate bullish catalyst visible.


Observations


Trend:

The stock is in a strong uptrend as indicated by higher highs and higher lows.

Moving averages (20-day, 50-day, 150-day, and 200-day) are aligned and sloping upwards, signaling bullish momentum.


Bollinger Bands:

The price moves within the bands, with occasional touches near the upper band, indicating consistent bullish activity.

Recent contraction suggests potential consolidation or an upcoming breakout.


MACD:

The MACD line is crossing above the signal line, suggesting a bullish reversal.

Positive momentum is gradually building, but the histogram shows low intensity.


RSI:

The RSI hovers near 50–60, signaling neutral to mildly bullish momentum.

It's neither overbought nor oversold, giving room for further upside.


Volume:

Volume spikes during upward movements confirm buying interest.

Recent decline in volume could indicate reduced participation or a pause in trend.


Elder Force Index:

Momentum appears to be fading slightly, but there's no significant bearish pressure.


Company background:

Sunway Berhad is a Malaysian conglomerate involved in property development, construction, healthcare, hospitality, and education. Known for its flagship Sunway City, the company integrates sustainable practices across its businesses. It is a constituent of the FBM KLCI, reflecting its significant presence in Malaysia's economy.



More stock ideas?

For more stock ideas and to receive this article directly in your email once published, visit https://kingkkk.substack.com/.

For this post, subscriber received it earlier at 8am today.


My portfolio outperformed the FBMKLCI in 2024. I am ranked 17th out of 76 investors on i3, with a 25.4% return (FBMKLCI: 12.9%).

https://klse.i3investor.com/web/blog/detail/stock_pick_2024/2024-12-31-story-h496982491-Stock_Pick_Year_2024_31_Dec_Result



Discussions
Be the first to like this. Showing 2 of 2 comments

Post a Comment