MASTER TEC GROUP BERHAD (Technical Buy)

• Master Tec Group Bhd (MTEC) closed at RM1.12, advancing 6.67% and breaking out from its recent consolidation range between RM1.05 and RM1.09. The stock is now trading above its 5-day Simple Moving Average (SMA) of RM1.09, supported by increased trading volume, signalling renewed momentum.

• From a technical perspective, the stochastic oscillator has shifted upwards from oversold levels, suggesting rising buying interest. Furthermore, the RSI has crossed above its 14-day SMA, reflecting stronger bullish sentiment, while the SmartMCDX index is pointing towards potential accumulation.

• The immediate resistance level stands at RM1.19. A break above this could propel the stock towards RM1.23. On the downside, RM1.09 (5-day SMA) and RM1.02 provide strong support levels.

• We recommend traders consider accumulating the stock around RM1.09, or near the 5-day SMA. A target price of RM1.19 presents an upside potential of approximately 9.2%. For risk management, setting a stop-loss at RM1.02 limits downside risk to 6.4%, offering a favorable risk-reward ratio for short-term traders.

Source: Kenanga Research - 25 Sept 2024