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