SCOMI Marine Bhd dropped to a 13-month low of 36 sen on May 25 amid extended correction process. Thereafter, the shares turned range-bound on consolidation and they re-tested the ebb once again on Monday before bouncing off the “double-bottom” formation in the wake of fresh bargain hunting interest, lifting prices to an intra-day high of 43.5 sen in early trading yesterday before being suspended from trading at 43 sen, pending an announcement.
Based on the chart development and price action over the past week, this stock appears making a fresh attempt to recover and the odds are great it may make it this round, simply because interest is evidently growing.
Elsewhere, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index continued to march higher after triggering a short-term buy on Monday.
Likewise, the 14-day relative strength index sustained the upward thrust from a reading of 29 on Monday to a high of 82 points yesterday.
In addition, the daily moving average convergence/divergence histogram expanded steadily against the daily signal line to stay bullish. It flashed a buy on Thursday.
Technically, indicators suggest a steadier trend ahead. If prices can penetrate the heavy overhead resistance of 46 sen successfully, which is also the 200-day simple moving average (SMA), investors can expect more scaling in the pipeline, targeting the 60 sen mark in the immediate term and later, the 70 sen level.
Support is pegged at the 21-day SMA of 38 sen.
● The comments above do not represent a recommendation to buy or sell.
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