CGS-CIMB Research

Magni-Tech Industries - Taking Off Now?

sectoranalyst
Publish date: Tue, 27 Feb 2024, 11:16 AM
CGS-CIMB Research

The stock rallied and closed at a new 5-month high to start the week on a strong footing. The strong close also send prices above the 5-month downtrend channel resistance. This breakout (of the downtrend channel) likely signals that the next leg up is now underway and possibly also signalling that the longer- term uptrend has resumed.

Both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) continued to climb higher, indicating that the current buying momentum is still on the rise.

We think that aggressive traders may want to go long now with a stop-loss set at RM1.89 (marginally below the 50-day EMA). Follow-through buying may lift prices to test the Fibonacci targets at RM2.13 (1.382) and RM2.19 (1.618) next.

Source: CGS-CIMB Research - 27 Feb 2024

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