HARBOUR-LINK GROUP BHD (Technical Buy)

• Harbour-Link Group Bhd (HARBOUR) rebounded and crossed above its 50-day Simple Moving Average (SMA) last Friday. The formation of an 'inverted hammer' pattern on its daily chart and a 'doji' pattern on its weekly chart indicate a potential trend reversal on the horizon.

• From a technical perspective, the Stochastic Oscillator is showing early signs of trending upwards from oversold territory, indicating renewed buying interest. The SmartMCDX index is also rising, reinforcing the likelihood of bullish turnaround.

• Looking forward, a decisive cross above the immediate resistance level of RM1.59 (coincident with its 13-day SMA) would confirm the trend reversal and could propel the stock towards the next resistance level at 1.69. Conversely, a dip below its key support level at RM1.51 may suggest a renewed downward trend.

• We recommend entering the stock at RM1.56 with a take-profit target set at RM1.68, offering a potential upside of about 7.7%. To manage risk, we suggest setting a stop-loss at RM1.49, limiting potential losses to approximately 4.5%.

Source: Kenanga Research - 15 Jul 2024