HPI Resources Bhd shares penetrated their most recent peak of RM1.99 to achieve a 10½-year high of RM2.12 during intra-day session amid strong follow-through buying momentum yesterday.Based on the daily bar chart, prices are likely to firm in the immediate term, following the positive breakout, but trading volumes must expand accordingly to sustain the trend going forward.
Turning to the indicators, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index retained their posture at the bullish territory.
Similarly, the 14-day relative strength index extended the upward thrust to finish at 84 points yesterday. Despite reaching the overbought area, it gave no sign of abating just yet.
In addition, the daily moving average convergence/divergence histogram continued to expand upward against the daily trigger line.
It flashed a buy on Thursday.
The pretty encouraging technical landscape suggest more upside potential in the pipeline. If the bulls can tear down the RM2.40 heavy barrier, the next upper objective would be to test the RM2.70 level or the RM3 mark.
Initial support is pegged at RM1.95, followed by an additional floor at RM1.89. – By K.M. Lee
·The comments above do not represent a recommendation to buy or sell
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