KSL HOLDINGS BHD (Technical Buy)

• KSL Holdings Bhd (KSL) closed at RM1.80 yesterday (+2.27%), aligning with its 50-day SMA. The stock broke above the 200-day SMA (RM1.76) while holding above the 5-day and 13-day SMAs, suggesting a strengthening upward trend. The sustained position above these key SMAs supports the potential for continued bullish momentum.
• From a technical perspective, the stochastic oscillator is climbing at 71.79, indicating strong buying momentum. Meanwhile, the Tom Demark Pressure Ratio (TDPR) is also increasing at 70.97, signalling diminishing selling pressure and reinforcing bullish sentiment. The RSI, currently at 55.34, is also trending higher, reflecting improving momentum and room for further gains.
• Immediate resistance lies at RM1.88 (23.6% Fibonacci retracement), with the next resistance level at its recent highs of RM1.95 and RM2.05. On the downside, immediate support is seen at RM1.76 (200-day SMA), followed by RM1.72 (38.2% Fibonacci retracement) and its recent low of RM1.68, providing a cushion against declines.
• We recommend entering the stock at RM1.80 and targeting a take-profit level at RM1.94, representing an upside potential of about 7.8%. To mitigate risk, a stop-loss should be placed at RM1.67, limiting potential losses to around 7.2%.

Source: Kenanga Research - 28 Nov 2024