SWIFT HAULAGE BERHAD (Technical Buy)

• SWIFT has been on an upward trend since late September, showing resilience each time its share price approached the 50- day Simple Moving Average (SMA) line. Recently, the stock retraced back to this longer-term SMA and formed a 'Doji' pattern, hinting at a possible market reversal. The convergence of the stock's short and middle-term (5 and 13-day) SMAs near the 50- day SMA also indicates a likelihood of significant movement ahead.

• From a technical standpoint, the Stochastic Oscillator and Tom Demark Pressure Ratio (TDRP) have entered oversold territory and are showing early signs of an upward reversal, suggesting a potential resurgence in buying interest. These indicators collectively enhance the prospects of the stock trending higher.

• A definitive breakout above the 38.2% Fibonacci retracement level at RM0.545 could pave the way for the stock to reach key resistance levels at RM0.575 and RM0.615. Conversely, a fall below the crucial support level of RM0.525 might see a decline towards RM0.505, corresponding to the 61.8% retracement level.

• We suggest considering an entry around RM0.540, close to the 50-day SMA, with a target take-profit at RM0.575, offering an estimated 6.5% upside. To manage risk, setting a stop-loss at RM0.505 is advised, capping potential losses at approximately 6.5%.

Source: Kenanga Research - 5 Dec 2023