Date: 26 September 2024
Broker: UOB Kay Hian Securities (M) Sdn. Bhd.
Overview of Eco World International
Eco World International (ECWI MK) is a property development company, primarily focused on international markets. The company has gained attention for its global projects and solid presence in key property markets, including the United Kingdom and Australia.
Market Data:
- Last Price: RM0.31
- Target Price: RM0.355 (near-term), RM0.375 (mid-term)
- Support Level: RM0.29
- Stop-loss Level: RM0.285
Technical Analysis and Buy Recommendation
UOB Kay Hian has issued a “Technical BUY” recommendation for Eco World International, citing a breakout in the stock’s price driven by renewed buying interest. The stock has remained above its base breakout level and is showing strong signs of bullish momentum.
Key technical factors contributing to the recommendation include:
- MACD Indicator: The moving average convergence divergence (MACD) shows growing bullish divergence, indicating that the stock is likely to experience further upward momentum in the near term.
- RSI Indicator: The relative strength index (RSI) is trending upwards, which supports the case for continued buying interest.
- BBI Line: The stock has stayed above its BBI (Base Breakout Indicator) line, further indicating the strength of the upward trend.
Target Price and Timeframe
- Target Price 1: RM0.355
- Target Price 2: RM0.375
- Expected Timeframe: Two weeks to two months
The stock is expected to continue its upward trajectory with strong technical signals supporting a breakout. UOB Kay Hian’s technical analysis suggests that investors can expect a potential return of 19% from the current levels.
Key Risks
While the technical outlook is positive, there are risks to consider:
- Stop-loss Level: The stock has a tight stop-loss level at RM0.285, meaning that if the price falls below this level, the bullish outlook may be invalidated, and investors could face downside risks.
In summary, Eco World International is positioned for a breakout, with strong technical indicators suggesting further gains. The stock offers an attractive near-term trading opportunity for investors looking to capitalize on its bullish momentum.
