• MR D.I.Y. Group (M) Berhad (MRDIY) closed at RM1.83 yesterday, gaining 0.55% following steep declines. The formation of a doji candlestick pattern and proximity to key support levels indicates potential for a technical rebound if buying interest strengthens. The 200-day SMA at RM1.85 remains a crucial resistance level, potentially triggering recovery momentum.
• From a technical perspective, the stochastic oscillator remains deeply oversold at 15.36, signalling potential for a relief rally if the stock attracts renewed interest. The Tom Demark Pressure Ratio (TDPR) sits at 24.83, reflecting the current state of strong selling pressure, which may ease in the coming sessions. Meanwhile, the RSI is sharply oversold at 23.83, well below the neutral 50-level, indicating bearish momentum but also opening the door for a possible technical rebound if sentiment stabilises.
• Immediate resistance lies at RM1.85, in line with the 200-day SMA and recent consolidation zones. A breakout above this level could pave the way toward RM1.92, aligning with the 38.2% Fibonacci retracement level, followed by RM2.05. On the downside, initial support is observed at RM1.81, corresponding to the 50% Fibonacci retracement, with further support at RM1.71 if selling persists.
• For traders anticipating a recovery, accumulating the stock between RM1.80 and RM1.83 may provide a favourable entry point. Setting a take-profit target at RM1.99 offers an upside potential of approximately 8.7%, while a stop-loss at RM1.70 limits downside risk to around 7.1%. This setup presents a reasonable risk-reward profile for those aiming to capitalise on a potential rebound in MRDIY’s price action, contingent on easing selling pressure and stabilising momentum indicators.

Source: Kenanga Research - 19 Nov 2024