KUALA LUMPUR (April 5): Rakuten Trade said Powerwell Holdings Bhd may extend its upward trajectory after breaking out from its one-week rectangular pattern with a second consecutive white candle on Thursday.

In a technical view note on Friday, the research house said that as the stock is pulling further away from all the exponential moving averages (EMAs), coupled with its relative strength index indicator pointing upwards, signalling a continuation of the ongoing uptrend.

Rakuten said it expects the rising momentum is set to steer the stock higher and test the next level of resistance of 47.5 sen (R1) and 50 sen (R2) in the near term.

“On the downside, stop-loss is set at 38 sen, below the 20-day EMA.

"Fundamentally, we like Powerwell via its exposure in thriving sectors like data centers, renewable energy, semiconductors, infrastructure development and utility projects.

“[Its] robust order book of RM67 million and a tender book of RM282 million (with success rate of 70%) position the company for sustained growth over the next one to two years.

“Its proven track record in renewable energy infrastructure and involvement in projects like the solar power plant in Bangladesh and the RTS Link underscore its potential for continued success in these sectors,” it said.