Monday, March 31st, 2025

Southern Cable Group Poised for Breakout as Consolidation Ends

Date: October 21, 2024
Broker: CGS International Securities Malaysia Sdn. Bhd.

Company Overview

Southern Cable Group Berhad is a manufacturer specializing in customized cables and wires. Its products are widely used across various sectors including power distribution and transmission, building and construction, infrastructure, telecommunications, manufacturing units, oil and gas processing industries, and petrochemical plants. The company serves customers worldwide, ensuring broad market reach.

Recent Stock Performance

  • Last Price: RM 0.87
  • The stock recently closed at a new 3-week high, marking a strong performance with a white Marubozu candle.
  • This indicates a breakout from a 3.5-month old consolidation triangle, suggesting the consolidation phase has ended and a new uptrend may be starting.

Technical Analysis

  • Entry Price: RM 0.85 – RM 0.87
  • Support Levels:
    • Support 1: RM 0.825
    • Support 2: RM 0.795
  • Stop Loss: RM 0.82 (a tick below the last swing low)
  • Resistance Levels:
    • Resistance 1: RM 0.91
    • Resistance 2: RM 0.95
  • Target Prices: RM 0.91, RM 0.95

Momentum Indicators

  • MACD & RSI: Both indicators have strengthened, signaling rising buying momentum. This suggests that the stock may continue to rise as aggressive traders look to capitalize on this trend.

Trading Recommendation

The report suggests that aggressive traders may consider entering a long position at current levels or on potential dips. A stop-loss at RM 0.82 provides a safety measure, while potential upside targets include RM 0.91 and RM 0.95, reflecting historical resistance levels that the stock might aim to retest.

Conclusion

Southern Cable Group’s recent performance indicates a bullish sentiment. The breakout from consolidation and positive momentum indicators point to a potential uptrend, making it an appealing opportunity for traders looking to benefit from technical buy signals.

Why Bitdeer Technologies gets a buy call?

Benchmark believes there’s a significant buying opportunity in Bitdeer Technologies, a Singapore-based cryptocurrency mining company that recently went public through a SPAC. Analyst Mark Palmer initiated coverage of Bitdeer with a buy rating, suggesting...

MYEG: Pioneering Digital Transformation in Malaysian Government Services

Date: October 2, 2024Broker: UOB Kay Hian Company Overview MYEG Services Berhad (MYEG) is a leading provider of digital solutions and services in Malaysia, specializing in facilitating government services through innovative technology. Market Position...

Frencken Group: Tech Sector Leader Poised for Growth Despite Slower Recovery

Frencken Group Ltd: Slower Recovery with a Promising Future Report Date: November 20, 2024 Broker: Maybank Research Pte Ltd Overview of Frencken Group Ltd Frencken Group Ltd, a prominent player in the technology sector,...