Date: Monday, 30 September 2024
Broker Name: UOB Kay Hian Securities (M) Sdn. Bhd.
Overview of Berjaya Food
Berjaya Food (BFD MK) is highlighted as a strong technical BUY candidate, with the potential for significant price appreciation based on recent market activity. The stock closed at RM0.385 and has shown a positive rebound, signaling the end of a recent correction. The technical outlook for the stock is bullish, with upside targets indicating strong potential returns.
Key Trading Insights
1. Technical BUY on Breakout
Berjaya Food is recommended as a technical BUY on breakout, with the potential for a 35.4% upside. The stock is poised for further gains after closing above its Balance Beam Indicator (BBI) line, signaling a shift from its previous correction phase.
2. Support and Stop-Loss Levels
The key support level for Berjaya Food is set at RM0.33, while the stop-loss is recommended at RM0.325. These levels are essential for investors looking to manage risk while capitalizing on the stock’s potential upward movement.
Bullish Technical Indicators
1. BBI Line Breakout
The stock has closed above the BBI line, which marks the end of its recent correction and signals a new bullish phase. This is a key technical indicator that points to the potential for continued price appreciation.
2. MACD Crossover
A bullish crossover in the Moving Average Convergence Divergence (MACD) has been observed, which indicates that buying momentum has overcome selling pressure. This crossover suggests that the stock is likely to continue its upward trend in the near term.
3. DMI Golden Cross
The Directional Movement Index (DMI) is on the verge of making a golden cross, which is another strong bullish signal. This suggests that the positive momentum is likely to continue, further supporting the potential for significant price gains.
Price Targets and Timeframe
1. Target Prices
Berjaya Food has been assigned two upside target prices: RM0.495 and RM0.535. These targets represent a potential return of up to 35.4%, indicating strong growth prospects from the current price of RM0.385.
2. Timeframe
The expected timeframe for achieving these target prices is two weeks to two months, making this stock an attractive short-term investment opportunity.
Conclusion
Berjaya Food is positioned for strong upward momentum, driven by positive technical signals such as the BBI line breakout, bullish MACD crossover, and the impending DMI golden cross. Investors are encouraged to take advantage of the 35.4% potential return, with clear support and stop-loss levels in place to manage risk effectively.
