Vstecs Bhd appears to be recovering from recent lows and has now surpoassed the RM3.28 threshold level, indicating that further upside may be possible if the positive momentum persists, according to Kenanga Investment Bank Bhd (Kenanga Research),
Kenanga Research's technical analysis reflects increasing buying interest coupled with easing selling pressure, pointing to potential for further gains and a possible bullish reversal.
Vstecs closed at RM3.23 on Tuesday, posting a solid gain of 3.86%.
As at 5:00pm Oct 23, its stock settled at RM3.53, gaining 30 sen to be among the top five gainers for the day. (Stock updates from Bursa Malaysia)
Key resistance levels are set at RM3.64 and RM3.75.
For traders who have accumulated the stock between RM3.20 and RM3.23, a take-profit target at RM3.69 offers an upside potential of approximately 14.2%, while placing a stop-loss at RM2.85 limits the downside risk to 11.7%.
The RM3.53 closing on Wednesday has reduced the gain from the take-profit target of RM3.69.
On the downside, immediate support lies at RM3.07, near the 50-day Simple Moving Average (SMA), followed by stronger support at RM2.90 and RM2.86 (its 200-day SMA).
