AGX Group, Crescendo Corporation – Key Technical Insights and Investment Opportunities
AGX Group (0299): Resuming Its Uptrend?
Recommendation: BUY
- Target Price: RM0.600, RM0.645
- Stop Loss: RM0.445
- Date of Recommendation: September 3, 2024
- Broker Company: CGS-CIMB Securities
Investment Thesis:
AGX Group, a prominent third-party logistics (3PL) service provider, has shown signs of resuming its uptrend after forming a bullish reversal pattern. This pattern, which includes a long white candle completing a 3-candle reversal off its listing day highs, suggests that the stock may be on the verge of its next leg higher.
Key factors driving this investment opportunity include:
- Technical Reversal: The stock has broken out above the downtrend line drawn from its all-time high of RM0.60, supported by strong volume. This breakout is likely signaling the start of a new uptrend.
- Bullish Indicators: Both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) have maintained their support levels and are turning upwards again, indicating that bullish momentum is picking up.
- Strategic Positioning: As a key player in the logistics sector, AGX Group is well-positioned to capitalize on the growing demand for logistics and transportation services in the region. The company’s comprehensive service offerings, including sea and air freight forwarding, road freight transportation, and warehousing, position it for steady growth.
Valuation and Catalysts:
The target prices of RM0.600 and RM0.645 reflect the technical setup and the potential for further upside as the stock tests historical resistance levels. The stock’s breakout above the downtrend line and rising momentum indicators suggest a favorable risk-reward scenario for investors looking to capitalize on this uptrend.
Crescendo Corporation (6718): Off We Go!
Recommendation: BUY
- Target Price: RM4.98, RM5.34
- Stop Loss: RM4.15
- Date of Recommendation: September 3, 2024
- Broker Company: CGS-CIMB Securities
Investment Thesis:
Crescendo Corporation, a diversified investment holding company, has broken out of a month-long rectangle pattern, indicating that the longer-term uptrend may have resumed. The stock is supported by a rising uptrend line and strengthening technical indicators, suggesting further upside potential.
Key factors driving this investment opportunity include:
- Technical Breakout: The stock has broken out of its consolidation phase with increasing volume, signaling the resumption of its uptrend. The Moving Average Convergence Divergence (MACD) has confirmed a golden cross, while the Relative Strength Index (RSI) has also turned upwards, signaling that the bulls are gaining control.
- Bullish Momentum: The stock’s momentum indicators are aligned with its uptrend, with the next targets at RM4.98 and RM5.34. The stock’s performance is further supported by its investment in property development and other diversified business interests, which are expected to contribute positively to its earnings.
- Sector Resilience: Crescendo Corporation operates in the property development and concrete products manufacturing sectors, both of which are poised for growth as Malaysia’s economy continues to recover. The company’s diversified business model provides a stable foundation for long-term growth.
Valuation and Catalysts:
The target prices of RM4.98 and RM5.34 reflect the stock’s potential to capitalize on the technical breakout and the ongoing economic recovery. Investors should consider entering at current levels or on weakness, with a stop-loss set at RM4.15 to protect against downside risk.
Thank you
