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YTL Johor Data Center Park

Source: Company website

Overall Technical Verdict

This chart shows potential for a bullish setup, but the trend is not yet fully confirmed. It's worth watching for a breakout above the 3.50 level (where the 50MA currently resides) with strong volume for a clearer signal of trend reversal.

The downtrend reversal potential is improving, supported by strong technical factors like volume, MACD convergence, and support at 2.86. However, the setup is not yet fully confirmed. A breakout above the 50-day MA with sustained volume will increase the likelihood of a successful reversal.

This post was originally published on https://kingkkk.substack.com​

Details of Technical Analysis:

1. Price Action:

   • The price bounced strongly off the support level around 2.86, indicating potential buying interest in this zone.

   • The stock has not yet broken above its short-term moving averages (e.g., 20MA or 50MA), which suggests it's still in a downtrend in the medium term.

2. Moving Averages:

   • 20-day MA (red): Still sloping downward.

   • 50-day MA (brown): Acting as resistance.

   • 200-day MA (black): Below the price, indicating long-term bullishness.

   • The stock appears to be at a potential trend reversal point but has not confirmed a breakout above resistance levels yet.

3. Volume:

   • A noticeable increase in volume on the recent green candle suggests potential accumulation and interest in this bounce.

4. RSI (14):

   • At 57.77, the RSI is neither overbought nor oversold, signaling neutral momentum.

5. MACD:

   • The MACD line is below the signal line, and the histogram is close to turning positive. This suggests early signs of bullish momentum, but confirmation is needed.

Themes on the stock:

1. Renewable Energy Growth: Focus on solar and green energy projects, aligning with global sustainability trends.

2. Data Center Expansion: Increasing investments in high-tech infrastructure to support digital demand.

3. Stable Utilities Revenue: Reliable income from electricity generation and water services in Malaysia and the UK.

4. Energy Transition: Benefiting from Malaysia’s shift to cleaner energy and government incentives for renewables.

5. Dividend Play: Regular payouts, appealing to income-focused investors.

Company Background:

YTL Power runs power plants, supplies electricity, and invests in renewable energy. They also manage water and sewerage services in the UK. Recently, they’ve been big on data centers and green tech. Their goal is simple: provide energy and utility services while exploring cleaner, smarter ways to do it.

To discover more stock ideas, visit https://kingkkk.substack.com/

About KingKKK

I am ranked among the top 10 investors on i3investor, achieving a 23.65% portfolio return in the first 10 months—more than double the FBMKLCI's 11.14%.

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