Overall Technical Verdict:

This setup is very attractive for trend-following traders. However, position sizing and risk management are essential, especially given the potential for short-term overbought corrections. It exhibits strong bullish characteristics and healthy volume patterns.

The only minor concern is the overbought RSI, which may signal a need for a short-term consolidation or pullback. However, in trending markets, overbought RSI levels can persist.

Details of Technical Analysis:

1. Trend: The stock is in a strong uptrend, with consistent higher highs and higher lows, which is a bullish indicator.
2. Moving Averages:
   • The price is above the 20-day, 50-day, 150-day, and 200-day moving averages, showing a well-established bullish trend.
   • The 20-day moving average is acting as a support line.
3. Bollinger Bands: The price is riding the upper Bollinger Band, often a sign of strong momentum.
4. Volume: The volume confirms the price action, with increased buying volume on up days, suggesting accumulation.
5. Momentum Indicators:
   • MACD: Positive divergence with the MACD line above the signal line, indicating bullish momentum.
   • RSI: Elevated (above 70), suggesting overbought conditions but not necessarily a reversal signal in a strong trend.
6. Breakout: The chart shows a breakout above a consolidation zone with high volume, confirming the strength of the uptrend.

Themes on the Stock:

• Property Development: Focuses on affordable and premium township projects, catering to Malaysia's growing demand for residential and commercial spaces.

• Township Development: Specializes in integrated townships with housing, schools, and amenities for sustainable community living.

• Industrial Growth: Expands industrial park developments to attract businesses, boosting recurring income streams.

• Education & Hospitality: Operates international schools and hospitality assets, diversifying revenue streams.

• Sustainability & ESG: Focus on green initiatives and sustainable urban planning to align with environmental, social, and governance (ESG) goals.

Company Background:

Matrix Concepts Holdings Berhad is a Malaysian property developer primarily focused on residential, commercial, and industrial projects. It operates township developments, offering affordable homes and integrated community facilities. The company also manages educational and hospitality assets, enhancing its diversified business model.

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

Subscribers to my Substack received my previous post on MATRIX when the share price was RM2.19 on November 18th. Based on the current share price of RM2.41, this represents a handsome 10% gain in less than a month.

​https://kingkkk.substack.com/p/matrix-riding-the-uptrend​