PRICEWORTH Wood Products Bhd ( PWORTH ) shares scaled to a 15-month high of 62 sen, up seven sen amid follow-through buying interest yesterday.
Based on the daily bar chart, it appeared that this stock is on the recovery course after building a base above the 43 sen floor over the past several months and with trading volumes continuing to stay robust, there may be more upside potential in the pipeline.
Elsewhere, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index were on the rise. It flashed a short-term buy at the mid-range in mid-week. Despite reaching the overbought area, they show no sign of fizzling out just yet.
Likewise, the 14-day relative strength index sustained the upward momentum from the mid-level to finish at 81 points yesterday.
Meanwhile, the daily moving average convergence/divergence histogram expanded sharply and positively against the daily trigger line to stay bullish. It issued a buy on Dec 13.
From the price action over the past couple of days and combined with encouraging technical reading, shares of Priceworth Wood Products is likely to extend gains in the short term.
The immediate target would be to patch up the 68-69 sen gap.
A successful penetration of the next upper heavy resistance band of 80 sen-85 sen will see the prevailing trend turning firmly bullish going forward.
Current support floor is set at the 53.5-54 sen range. By K.M. Lee
● The comments above do not represent a recommendation to buy or sell.
Redwood decking, redwood fencing, landscaping, and more provided by Humboldt Redwood Company.
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