Long term bullish on economy recoveryGENTING to test on 5.54 after rebounding on the bottom parallel channel and breakthrough 5.21 resitance.
RSI has to rebound on 50.
Gentinglong
GENTING BHD LONGBusiness Overview: Genting Berhad is principally an investment holding and management company. The Group is involved in leisure and hospitality, oil palm plantations, power generation, oil and gas, property development, life sciences and biotechnology activities, with operations spanning across the globe, including in Malaysia (the Group’s country of origin), Singapore, Indonesia, India, China, the United States of America, the Bahamas, the United Kingdom and Egypt. In the core leisure and hospitality business, the Genting Group and its brand affiliates, market and offer a suite of products under a number of premier brands including Genting, Resorts World, Genting Grand, Genting Club, Crockfords, Maxims, Crystal Cruises, Dream Cruises and Star Cruises. The Genting Group also have tie ups with established names such as Universal Studios, Premium Outlets, Zouk, Hard Rock Hotel, Hilton and other renowned international brand partners.
Fundamental take:
As business in Malaysia contributes a significant portion of Genting Bhd's performance, Genting bhd is affected by the covid situation in Malaysia and other parts of the world. Malaysia has been fighting hard in this covid situation and certain states experienced periodic MCO/lockdown for the past 9 months.
Nevertheless,
1) Recent financial performance has shown core gambling business improved after the first major lockdown and losses reduced.
2) Vaccine will reach Malaysia in the 1st Qtr 2021.
3) Chinese New Year is round the corner. Many itchy hands will try their luck in the "prosperous" 15 days, making Genting Bhd prosperous.
4) Tourism plays a major role for Genting Bhd to recover back to pre-covid share price RM 8-10. With an assumption of vaccine is effective to control the covid situation, we expect Malaysia to open up the tourism sector in 2nd half of 2021, hence a rise in share price in the next 2 years
Genting Bhd will move into the black in 2021.
On the flip side, any major deterioration in the covid situation or government intervention (lockdown) in the 1 Qtr would adversely affect Genting Bhd's performance and delay her recovery.
With cost cutting efforts in 2020 and sufficient cash in reserves, Genting can withstand another covid impact, and grind out of this crisis.
Technicals:
- Genting Bhd broke its major downtrend resistance and is currently doing nice pullback along the resistance trendline.
- Expect the support range of RM 3.85 - 4.22 to hold for the upcoming joyous Chinese New Year.
- Risk of false breakout is low at present unless a change in Malaysia's situation.
Entry Price: RM 4.24 - 4.45
Take Profit:
1) exit on major resistance levels (of your choice)
2) wait until Malaysia opens up tourism sector and gambling numbers recovered 80%
Good luck in Trading and have a prosperous 2021.
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Genting key levels to watchThese are the key levels for me on Genting, overall direction is bullish for me but prices are currently testing a key resistance area where we could see a pullback here. Love to hear your thoughts on this!
Genting facing bullish pressure Price is reaching our support in line with our trend line, 78.6% retracement and 61.8% extension where we could see a bounce above this level.
