SOLARVEST HOLDINGS BERHAD (Technical Buy)

• Following a four-day period of consolidation, SLVEST is positioned to potentially break the upper consolidation range marked at RM1.26 in the near term. This view is further bolstered by the share price trading within a sustained tight range despite a decrease in traded volume.

• From a technical standpoint, the stochastic oscillator, configured at settings 20,3,3, indicates an upward momentum, signalling a shift from a previously oversold condition. This upward trend is echoed by the Tom DeMark Pressure Ratio (TDPR), illustrating renewed buying interest in the stock.

• We project that SLVEST could approach a re-test of its immediate resistance at RM1.29 in the upcoming period. Successfully surpassing this pivotal resistance with conviction could pave the way to the next significant resistance at the recent peak of RM1.43.

• We recommend an entry point for the stock at between RM1.23-RM1.26, with an initial target price set at RM1.35 (representing 7% upside). Concurrently, we recommend a stop-loss level at RM1.19 (representing a 5.5% downside risk).

Source: Kenanga Research - 11 Sept 2023