Kenanga Research & Investment

Actionable Technical Highlights - RGB INTL BHD (RGB)

kiasutrader
Publish date: Fri, 08 Nov 2024, 10:16 AM
Daily Charting - RGB INTERNATIONAL BHD (Technical Buy)

Technical chart

Key Levels
Name: RGB INTL BHD 52 Week H/L (RM): 0.51/0.265 Last Price: RM0.380
Bursa Code: RGB 3-m Avg. Daily Vol.: 7,288,762 Resistance: RM0.385 (R1) RM0.420 (R2)
CAT Code: 0037 Free Float (%): 52 Take Profit: RM0.410
Market Cap: RM1.5b Beta vs. KLCI: 1.1 Stop Loss: RM0.355

RGB INTERNATIONAL BERHAD (Technical Buy)

  • RGB International Berhad (RGB) closed at RM0.380 yesterday, marking a 2.56% decline as the stock consolidates around key support levels. The price action reflects a period of consolidation, potentially forming a base for a possible reversal if buying interest emerges at current levels. The convergence of the 13, 50, and 200-day SMAs suggests that a decisive move may be on the horizon, with upside potential if bullish momentum builds.
  • From a technical perspective, the stochastic oscillator is currently at 34.34, rising from lower levels and indicating a gradual increase in buying momentum as the stock exits oversold conditions. The Tom Demark Pressure Ratio (TDPR) stands at 37.22, signalling reduced selling pressure, which could provide a conducive environment for a potential rebound. Additionally, the RSI is trending slightly upward at 43.79, approaching the neutral 50 level, which signifies a recovery in momentum that could support further upside if sustained. A bullish divergence in the RSI adds to the optimism for a trend reversal, as the indicator moves higher while the price stabilises.
  • Immediate resistance is observed at RM0.385, aligning with the 13-day SMA. A breakout above this level could lead to further gains, with RM0.420 as the next significant resistance zone, marked by previous price highs and the 200-day SMA. On the downside, support is located at RM0.365, providing a near-term cushion, with additional support around RM0.350 for added stability against pullbacks.
  • For traders looking to capitalise on a potential reversal, accumulating around RM0.370-RM0.380 may offer a strategic entry point. A take-profit target at RM0.410 offers an upside potential of approximately 7.9%, while setting a stop-loss at RM0.355 limits downside risk to around 6.6%. This setup presents a balanced risk-reward ratio, allowing traders to take advantage of a potential shift in momentum if RGB's price action turns bullish.

Source: Kenanga Research - 8 Nov 2024

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