AFTER finding a shelter at the 13-month low of 36.5 sen on May 25 during the recent correction phase, Lion Diversified Holdings Bhd shares turned range-bound on consolidation, lasting more than a month before showing signs of recovery in the wake of bargain-hunting interest.
The stock closed flat at 42 sen yesterday.
According to the daily bar chart, this stock has been on the rise over the past several weeks and supported by pretty encouraging volumes, albeit at a snail’s pace.
The latest development suggests that Lion Diversified may be building up the momentum for a positive breakout in the near future. A convincing push above the mid-term descending line of 45 sen will signal a bullish reversal.
The oscillators per cent K and per cent D of the daily slow-stochastic momentum index continued to strengthen after flashing a short-term buy at the neutral zone earlier in the week. Likewise, the 14-day relative strength index sustained the upward thrust to settle at the 64-point level yesterday.
In addition, the daily moving-average convergence/divergence histogram expanded positively against the daily trigger line to retain the bullish note. It flashed a buy signal on July 9.
Technically, investors can expect prices to firm up gradually in the immediate term. Upon breaking out, the bulls may turn aggressive, en route to the 55-sen mark. Current support is pegged at the 50-day simple-moving average of 40 sen. — By K.M. LEE
● The comments above do not represent a recommendation to buy or sell.
- by thestar.com.my
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