BERJAYA CORPORATION BHD (Technical Buy)

• Berjaya Corporation Bhd (BJCORP) ended the day unchanged at RM0.320 on Wednesday. The stock is consolidating within a range near its 200-day SMA, close to the 78.6% Fibonacci retracement level at RM0.32, suggesting a strong support level. Additionally, the convergence of all key SMAs - 5-day, 13-day, 50-day, 200-day, indicates the stock may be preparing for a breakout from its current consolidation phase.
• Technically, the stochastic oscillator is trending upwards at 33.33, indicating early signs of increasing buying momentum, while the Tom Demark Pressure Ratio (TDPR) at 62.15 reflects neutral-to-bullish sentiment. Additionally, the RSI is stabilising around 48.72, hinting at a potential upward move as it stabilizes near neutral territory.
• Key resistance levels to watch include RM0.325 (50-day SMA), followed by RM0.345 (61.8% Fibonacci retracement). A breakout above these levels could signal an exit from consolidation, paving the way for further gains. On the downside, immediate support lies at RM0.305, marking the lower boundary of the consolidation range and providing a cushion against potential declines.
• We recommend making an entry at RM0.32, with a take-profit target at RM0.34, offering an upside potential of approximately 6.3%. To mitigate risk, a stop-loss should be set at RM0.30, limiting potential losses to around 6.3%.

Source: Kenanga Research - 1 Nov 2024