MYNEWS HOLDINGS BHD (Technical Buy)

• MyNews Holdings Bhd (MYNEWS) closed at RM0.63 yesterday, posting a modest gain of 0.80%. The stock has been consolidating near its 5-day and 13-day SMAs, which signals potential accumulation as it stabilizes above key support levels. The upward trajectory of its 50-day SMA further supports a gradual bullish outlook.
• From a technical perspective, the stochastic oscillator is increasing at 77.78, approaching overbought territory but still showing signs of sustained buying momentum. Meanwhile, the Tom Demark Pressure Ratio (TDPR) trending positively at 70.82 reflects a continuation of bullish sentiment. Additionally, the stabilising RSI at 55.93 suggests potential for further upward movement.
• Immediate resistance level is identified at RM0.635, aligning with 38.2% Fibonacci retracement. A breakout above this level could pave the way towards RM0.665 (23.6% Fibonacci retracement) and RM0.71 (recent high). On the downside, key support level lies at RM0.625 (13-day SMA), followed by RM0.615 (50% Fibonacci retracement) and RM0.59 (61.8% Fibonacci retracement).
• For traders, entering near RM0.63 offers an attractive entry point, with a potential upside towards RM0.665, presenting a gain of approximately 5.5%. A stop-loss at RM0.60 would limit downside risk to about 4.7%, offering a favourable risk-reward ratio for short-term investors.

Source: Kenanga Research - 25 Nov 2024