ZELAN Bhd shares hit a six-week high of 73.5 sen during intra-day session before trimming advances slightly to settle up 3.5 sen to 72 sen, backed by strong trading volumes yesterday.
Based on the daily bar chart, this stock has carved out a short-term ascending channel following gains the past month and it looks like prices are apparently on the second leg of an upward trend.
The first wave saw prices firming from the 44.5 sen level in late May after forming a “double bottom” pattern before peaking out temporarily at 79.5 sen on Aug 4.
Elsewhere, the daily slow-stochastic momentum index was on the rise. It’s oscillator per cent K reversed up from the neutral area and climbed over the oscillator per cent D to trigger a short-term buy on Thursday. Mirroring the trend, the 14-day relative strength index improved significantly from the mid-range to close around the 77 points level yesterday.
Also, the daily moving average convergence/divergence histogram continued to expand positively against the daily signal line to retain the bullish note. It flashed a buy on Sept 20.
The latest price actions and technical developments are pretty promising, indicating Zelan is likely to extend the recovery process in the immediate term. A push above the mid-term bearish descending line of 75 sen, followed by a successful penetration of the recent high of 79.5 sen will signal a bullish reversal, thus clearing the path for a challenge of the RM1.12 heavy resistance barrier in the near-term.
Initial support is seen at 70 sen. An additional floor is pegged at the 21-day simple moving average of 66 sen. – By K.M. Lee
The comments above do not represent a recommendation to buy or sell.
The Most Essential Lesson for all Investors - Koon Yew Yin
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*The Most Essential Lesson for all Investors - Koon Yew Yin *
*Author: Koon Yew Yin | Publish date: Sat, 21 Nov 2015, 11:02 AM *
Many of my close friends an...
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