Dayang may extend upward trajectory, says Rakuten Trade

TheEdge Wed, Feb 21, 2024 08:34am - 1 month View Original


KUALA LUMPUR (Feb 21): Rakuten Trade said Dayang Enterprise Holdings Bhd may extend its upward trajectory after breaking out from its three-week ascending triangle pattern, surpassing the immediate resistance of RM2.16 with a long white candle on Tuesday.

In a technical view note on Wednesday, the research house said that in view of the stock hitting a new 52-week high, coupled with four white candles in a row, a positive outlook is expected.

It said that in addition, Tuesday’s white bullish candle was supported by higher trading volume, which suggests a return in buying interest.

“We expect the rising momentum is set to steer the stock higher and test the next level of resistance of RM2.44 (R1) and RM2.56 (R2) in the near term.

“On the downside, stop-loss is set at RM2.02, below Feb 8’s low.

“Fundamentally, we like Dayang due to its solid earnings growth, driven by: i) recent announcements of new contract wins and renewals; ii) an anticipated increase in vessel utilisation and charter rates benefiting Dayang's external marine charter operations, particularly via its stake in Perdana Petroleum Bhd; and iii) higher offshore activities planned by Petronas.

“As such, we believe Dayang’s earnings outlook to remain buoyant,” it said.

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