The technical setup for Central Global Berhad (“CGB”) is showing signs of a potential breakout after a period of sideways consolidation. Over the past few weeks, the stock has oscillated between RM0.860 and RM0.945, gradually forming a base as momentum indicators begin to improve, suggesting that buying interest is building in a measured and sustainable manner.

The daily candles are currently testing the upper end of the consolidation range near RM0.900, holding above short-term moving averages, which have started to slope upward, signaling that near-term sentiment is turning bullish. Mid-term moving averages also show early signs of turning higher, indicating that any upward movement is likely supported by structural strength rather than speculative spikes.

After briefly pulling back from the RM0.945 resistance, CGB has found support around RM0.860, where buying pressure has re-emerged on lighter volume, suggesting that profit-taking was efficiently absorbed without heavy distribution. The rebound in recent sessions has been accompanied by modest volume increases, hinting that accumulation may be resuming. Momentum oscillators align with this view, showing that bullish strength is consolidating at a higher base, setting the stage for a potential higher-high formation.

From a chart perspective, the immediate resistance remains at RM0.945, representing the recent swing high and a psychological barrier. A decisive breakout above this level, ideally confirmed by volume exceeding recent averages, could trigger the next leg higher toward RM1.00, a level that coincides with historical resistance zones. On the downside, RM0.860 serves as the key support, and a failure to maintain this level could signal weakness, with a stop-loss at RM0.840 recommended to manage downside risk.

Overall, CGB’s trend structure appears constructive. The combination of improving momentum, upward-sloping moving averages, and a well-defined support base paints a picture of a healthy trend poised for continuation. As long as the stock remains supported above RM0.860, the bulls maintain control, and a break above RM0.945 would likely confirm the next phase of the uptrend toward RM1.00.

Berjaya Research has started coverage on Central Global Berhad (CGB) with a BUY call and a target price of RM1.10. This suggests a potential total return of about 26.8%, as the company is showing growth from two key areas, e.g. steady progress in its construction projects and signs of recovery in its manufacturing business

Technical View – Accumulation Phase Poised for Breakout

CGB closed at RM0.885, holding above all key moving averages and maintaining a constructive uptrend structure that’s been in place since early-2025. The 200-day EMA (~RM0.850) continues to rise, confirming long-term bullish momentum, while price action has been consolidating within a narrow RM0.865–0.900 band over the past two months, a typical sign of accumulation before a directional move.

Short-term momentum is improving: the oscillator has turned higher from oversold levels, and repeated “Buy” signals around the RM0.865–0.870 area suggest accumulation by stronger hands. However, repeated rejections near RM0.900–0.905 highlight a clear supply zone, a breakout above this level is needed to trigger follow-through buying and open a path towards RM0.930–0.950.

On the downside, RM0.850 remains the critical structural support. A decisive break below this would shift sentiment to neutral and risk a pullback towards RM0.820.

Technical Bias: Bullish-neutral. Current setup points to a coiled base with a favourable risk-reward skew, but a breakout confirmation above RM0.900 is key for trend continuation. Failure to do so risks prolonged sideways trade or a reversal below key support.