PROLEXUS Bhd shares hit an intra-day high of RM1.32, the best level since October 1997 before trimming gains slightly owing to profit-taking activity to settle at RM1.28, up four sen.
The upward thrust came about after a period of tight range-bound consolidation, lasting slightly more than two months.
Based on the daily chart, a positive breakout was sighted on Thursday but the more significant breakthrough was prices had breached the previous rally peak of RM1.31 in 2000.
Theoretically, it is a major breakout, hence, it would open the windows for the bulls to extend climbing in the short term.
The initial upside objective would be to fill a minor gap at the RM1.40-RM1.44 range. Heavy resistance is expected at the RM1.67-RM1.70 band.
Elsewhere, the oscillator per cent K and the oscillator per cent D of the daily slowstochastic momentum index were firming. It triggered a short-term buy at the neutral area in mid-week.
Also on the rise, the 14-day relative strength index improved steadily from the mid-range on Monday to close at the 86points level yesterday.
Meanwhile, the daily moving average convergence/divergence histogram expanded sharply against the daily signal line to stay bullish. It had issued a buy call on Nov 26.
Technically, indicators and chart developments are promising, implying there is great possibility prices are likely to advance on follow-through buying interest.
Initial support is envisaged at the RM1.23 level. A lower floor is resting at the RM1.17 mark.
By K.M.LEE, thestar.com.my
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