E-government services provider MY EG Services Bhd and educational support services company Ramssol Group Bhd are ‘technical’ buys at Kenanga Research
In a report released today, Kenanga said after gapping down from the prior day’s closing of 95.5 sen to as low as 65.5 sen on Feb 7, MYEG’s share price has been climbing inside an upward sloping channel before ending at 78.5 sen yesterday, which is at the lower range of the ascending channel.
A resumption of the uptrend could be on the cards in view of the positive technical signals triggered by the stochastic indicator’s reversal from an oversold position as the 21-day EMA has just crossed above the 21-day MA line, the report said.
An upward shift could then propel the stock to advance towards our resistance thresholds of 88.5 sen(R1; 13% upside potential) and 95 sen (R2; 21% upside potential). It has set its stop loss price at 69 sen (representing a 12% downside risk).
The same report said Ramssol’s share price has gapped down from the closing of 44 sen on Feb 23 and fell further to as low as 30 sen in mid-March, likely linked to its announcement of a weak set of quarterly financial results, before bouncing up to form an upward channel since then.
The stock, which closed at 38 sen yesterday, is poised to extend its upward shift backed by the following bullish technical signals, it said. It has placed a stop loss level at 33.5 sen, representing a downside risk of 12%.
Ramssol is a provider of human resources solutions, focussing on human capital management and student management solutions. The group posted net earnings of RM2.1 million in 1QFY23 after delivering a full-year performance of RM4.2 million in FY22. –TMR