Date: Monday, 30 September 2024
Broker Name: UOB Kay Hian Securities (M) Sdn. Bhd.
Overview of Dayang Enterprise Holdings
Dayang Enterprise Holdings (DEHB MK) is highlighted as a strong technical BUY candidate, with potential for significant price appreciation based on recent trading activities. The stock closed at RM2.27 and is showing bullish technical indicators that suggest further upward movement in the near future. The company’s share price managed to break above key resistance levels, signaling a positive trend ahead.
Key Trading Insights
1. Technical BUY on Breakout
The recommendation for Dayang Enterprise Holdings is a technical BUY, with an expected potential return of up to 22.5%. The target prices are set at RM2.71 and RM2.83, indicating strong upside potential from the current price of RM2.27.
2. Support and Stop-Loss Levels
The current support level for the stock is RM2.08, while the stop-loss is recommended at RM2.07. These levels provide investors with critical entry and exit points to manage risk effectively while taking advantage of the expected bullish trend.
Bullish Technical Indicators
1. BBI Line Breakout
The stock price closed above the Balance Beam Indicator (BBI) line during the last trading session, which is a positive technical signal. This breakout suggests a continued upward momentum in the share price.
2. DMI Signals and RSI Uptick
The Directional Movement Index (DMI) is currently showing positive signals, reinforcing the likelihood of continued bullish momentum. Additionally, the Relative Strength Index (RSI) has shown an uptick, which suggests that buying pressure is increasing, further supporting the positive outlook for the stock.
Price Targets and Timeframe
1. Target Prices
The stock has been pegged with two target prices: RM2.71 and RM2.83. These targets are based on the breakout above the RM2.31 level and suggest an upside potential of 22.5%.
2. Timeframe
The expected timeframe for these targets to be achieved is between two weeks to two months, making it an attractive short-term investment opportunity.
Conclusion
Dayang Enterprise Holdings is poised for a strong upward movement, driven by positive technical indicators such as the BBI line breakout, DMI signals, and RSI uptick. Investors are advised to take advantage of the potential 22.5% return, with a clear stop-loss strategy to manage risks.
