• Focus Point Holdings Berhad (FOCUSP) closed at RM0.800 last Friday, rising by 0.63%, as the stock consolidates near its immediate resistance-turn-support level of RM0.800, signalling potential stabilisation after recent pullbacks. Previously, we recommended a technical buy at this level on 20 November, achieving a swift 5.4% return (with a TP of RM0.840) within seven trading days. The share price has since retraced and is now consolidating near its 200-day SMA at RM0.780. The current price action reflects a narrow trading range, suggesting accumulation at these levels. The convergence of the 5, 13, and 50-day SMAs between RM0.790 and RM0.800 highlights a critical pivot zone, indicating that a decisive movement may be forthcoming.
• The stochastic oscillator at 37.35 is emerging from oversold territory, signalling early signs of improving momentum. The Tom Demark Pressure Ratio (TDRP) at 58.92 suggests diminishing selling pressure, creating a favourable environment for recovery. Meanwhile, the RSI at 54.04 is stabilising near the neutral 50-mark and trending upwards, indicating potential for a reversal. A bullish divergence in the RSI further reinforces the likelihood of a rebound.
• Immediate resistance is positioned at RM0.840, with a breakout above this level potentially driving the stock towards RM0.870. On the downside, immediate support is firm at RM0.795, with additional cushioning at RM0.780, coincident to its 200-day SMA, offering robust protection against further declines.
• Traders looking to capitalise on FOCUSP's recovery potential may consider accumulating the stock between RM0.790 and RM0.800. A take-profit target at RM0.840 offers an upside potential of approximately 5.0%, while a stop-loss at RM0.760 limits downside risk to around 5.0%. This setup presents a balanced risk-reward profile, appealing to traders expecting stabilisation and potential recovery in FOCUSP's price trajectory.

Source: Kenanga Research - 16 Dec 2024