KachiFX Trading Notes For Wednesday [2/10/2024]:

KLCI saw a sharp decline today, dropping 1.03% to close at 1,639.31, driven by negative sentiment linked to geopolitical tensions in the Middle East. The index was volatile, fluctuating between 1,647.30 and 1,633.08 throughout the session. Trading volume was relatively low, with a turnover of RM149.30 million, indicating subdued investor activity.

Main stocks that showed notable performance include:

Nestle (NESTLE) as the top gainer, increasing by 0.9% to close at RM105.50.
Allianz (ALLIANZ) recorded the largest percentage drop, losing 0.4% to RM20.20.
Sector Highlights:

The Financial Services Index took a hit, losing 145.48 points, while the Energy Index managed a slight gain of 5.48 points.
Key stocks to monitor include:

Nestle continues to show strength and could maintain its upward trend if support levels hold.
Allianz may face additional selling pressure, and its price action should be closely watched for signs of a potential reversal.
Outlook:
The broader market sentiment remains cautious, as investors weigh the impact of the Middle East conflict. Moving forward, attention will likely shift to construction, property, and utilities sectors ahead of Malaysia’s Budget 2025, which could provide new opportunities.

🔔 Trading Idea: V.S. INDUSTRY BHD

BUY/LONG: +/- RM0.98

SL: RM0.82 (16.33%)

TP1: RM1.15 (17.35%)

TP2: RM1.20 (22.45%)

TP3: RM1.40 (43.47%)

TP4: RM1.51 (54.08%)

REASON: The stock is currently trading within a descending triangle pattern, a classic consolidation pattern often leading to a breakout. The price has been squeezing between lower highs and consistent support levels around RM0.98. A breakout from this triangle is anticipated, and the setup indicates a bullish move once the price surpasses the downtrend line, which aligns with a key resistance zone near RM1.00.

Moreover, this breakout point coincides with the release of the company’s next quarterly results on 12th December. Such events often act as catalysts for price movements, particularly if earnings exceed market expectations. We are keeping an eye on the potential breakout before or around this date, as volume could surge leading into the earnings announcement.

If the breakout occurs, the target prices are set between RM1.15 and RM1.51, representing significant upside potential. However, if the stock breaks down below RM0.98, we recommend managing risk with a stop loss at RM0.82.

For those interested in a deeper dive into the technicals or potential setups, feel free to connect for more detailed analysis.

Be prepared for end year! Steel price will be on a rise! Remember the 5 year cycle! Don’t miss out on this opportunity!

We will see RM 1.00!!!
Want to learn more don’t be afraid to join our private group!

Elridge Energy Holdings – Trade Setup:

• Buy Entry: Around RM 0.400
• Take Profit 1 (TP1): RM 0.425 (Conservative)
• Take Profit 2 (TP2): RM 0.475 (Moderate)
• Stop Loss: RM 0.375 (Below recent support)

Elridge Energy is showing early signs of a potential bullish reversal, backed by rising volume and a breakout from its recent consolidation phase. Traders should be mindful of resistance around RM 0.425, as this could present a short-term challenge. Current momentum indicators are neutral, so it’s essential to keep an eye on the stock for continued strength before committing to a trade.

For those interested in a deeper dive into the technicals or potential setups, feel free to connect for more detailed analysis.

Teo Seng Analysis:

Current Price Targets:
TP1: RM 3.00
TP2: RM 3.50

Teo Seng remains a strong player in the poultry sector, backed by solid financials. As we approach the financial year-end 2024, the company’s performance looks promising with potential for significant upside. Even at its current valuation, Teo Seng still appears undervalued, offering a great opportunity for those looking to capitalize on the current bull run.

If you’re keen to dive deeper into this analysis or want to discuss potential setups, feel free to message me for more insights!