V.S. INDUSTRY BHD (Technical Buy)

• V.S. Industry Bhd (VS) settled at RM1.09 yesterday, marking a gain of 1.87%. Over the past few trading sessions, the stock has shown signs of stabilizing above all its crucial SMAs (5-, 13-, 50-, 200-day), suggesting the stock may be building a strong foundation as it tests higher levels.
• Technically, the stochastic oscillator has climbed to 79.80, suggesting continued strong buying momentum. The Tom Demark Pressure Ratio (TDPR) is rising at 66.00, reflecting positive momentum and diminished selling pressure. Meanwhile, the RSI, stands at 61.09, is trending positively, implying further upside momentum if buying interest persists.
• The immediate resistance lies at RM1.11, aligning with the 38.2% Fibonacci retracement level, followed by RM1.20 (23.6% Fibonacci retracement level). On the downside, key support level to watch is at RM1.07 (5-day SMA), with additional support at RM1.05 and RM1.02, coinciding with crucial 13-day and 50-day SMAs.
• For traders looking to capitalize on the uptrend, entering near RM1.09 could offer a strategic entry point. A take-profit target at RM1.19 provides an upside of approximately 9.2%, while a stop-loss at RM1.01 limits downside risk to around 7.3%, presenting a favourable risk-reward balance.

Source: Kenanga Research - 19 Nov 2024