Eye On Stock
MULPHA International shares were on the rise for more than a month, climbing from the recent lows of 38.5 sen in late August to a high of 48 sen during intra-day session on Thursday amid fresh bargain hunting interest.
Yesterday, they re-tested the previous day’s peak again before paring gains to close flat at 47.5 sen. Based on the daily bar chart, prices are flirting just two ticks below the mid-term descending line of 28.5 sen and it looks like a major breakthrough may come about soon – because interest in this counter is growing.
As for the indicators, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum retained the buy signal at the bullish territory. Though the 14-day relative strength index had reached the overbought reading of 91 points, there was no sign of it tapering off just yet.
Elsewhere, the daily moving average convergence/divergence histogram continued to expand positively against the daily trigger line after issuing a buy on Sept 13.
The promising technical reading suggest a positive breakout may be on the card. Perhaps, investors can consider taking up a position, if one is optimistic of the trend going forward.
To the upside, a push above the relatively strong barrier of 52.5 sen will clear the way for a challenge of the previous rally peak of 62 sen, established in mid-June last year.
Support floor is pegged at the 44 sen mark. — By K.M. LEE
> The comments above do not represent a recommendation to buy or sell.
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