SRF | 60% returns | 3 Year Breakout

5 Sep 2024

SRF

Monthly time frame
Stock has been moving along the upward white dotted parallel channel since 2014
Stock riding above 20-, 50- & 200-month moving averages
Stock is consolidating along 20-month moving average for 2 years
RSI > 55, indicating build-up of bullish momentum
MACD crossover approaching and is above the 0 line, indicating bullish momentum

Weekly time frame
Stock has been consolidating within the dotted yellow parallel channel for last 3 years
Stock is trading near the yellow resistance trend line & near the white trend line of the upward channel indicating a potential for double trendline breakout
Stock riding above 20-, 50- & 200-week moving averages
Stock has recently tested 200 WMA and bounced back
RSI > 60, indicating bullish momentum
MACD extending the crossover & above the 0 line, indicating bullish momentum

Daily time frame
Stock seems to be making ascending triangle formation, with range compression
Stock riding above 20-, 50- & 200-day moving averages
RSI > 60, indicating bullish momentum
MACD is above the 0 line, indicating solid momentum

Conclusion
Entry: 2,650
Stop Loss: 2,400
Target 1: 3,050
Target 2: 3,650
Target 3: 4,250

Fundamentals
ROCE = 13% {Ideal > 15}
ROE = 12% {Ideal > 15}
Int Coverage = 5.6 {Ideal > 2}
Debt to equity = 0.44 {Ideal value < 1}
CF Operations / EBIT = 1.11 (Ideal > 1)
Promoter stake has remained consistent over the years > 50%
DII participation has doubled in the last 2 years

12 Okt 2024

Dagangan ditutup: hentian tercapai

Weekly candle has closed below 2400. Seems the stock is still in the consolidation zone.