RANHILL UTILITIES BHD (Technical Buy)

• Ranhill Utilities Bhd (RANHILL) closed at RM1.37 yesterday, recording a modest gain of 0.74%. The stock recently broke out of a symmetrical triangle chart pattern, signalling bullish momentum. Its position above the critical 200-day SMA at RM1.30 further reinforces the upward trend.
• Technically, the stochastic oscillator at 60.61 indicates the potential for further upside as the stock stabilises near key support levels. The Tom Demark Pressure Ratio (TDPR) stabilising at 55.19 also points to neutral-to-bullish sentiment. Additionally, the RSI is increasing at 59.29, reflecting improving momentum and room for further upward movement.
• Looking ahead, a clear breakout above its recent high of RM1.44 could push the stock toward higher resistance level at RM1.46 (38.2% Fibonacci retracement). On the downside, key support levels are identified at RM1.34 (13-day SMA), followed by RM1.30 (50-day and 200-day SMA).
• We recommend entering the stock near RM1.37 and targeting a take-profit level at RM1.45, representing an upside potential of about 5.8%. To mitigate risk, a stop-loss should be placed at RM1.29, limiting potential losses to around 5.8%.

Source: Kenanga Research - 25 Nov 2024