ALAM Maritim Resources Bhd retraced from the recent peak of RM1.25 on Jan 13 to a low of RM1.10 on Jan 25 on correction before bouncing off slightly in the wake of renewed bargain hunting, lifting prices to a high of RM1.16 during intra-day session yesterday.
Based on the daily bar chart, this stock has been on recovery, albeit a little volatile since bottoming out at 87.5 on Dec 10, last year. In spite of the recent pullback, the prevailing trend still is bullish, and it will remain so, as long as the 21-day simple moving average (SMA), resting at RM1.09 and still rising, continues to support the share price.
Elsewhere, the daily slow-stochastic momentum index was firming. The oscillator per cent K climbed over the oscillator per cent D to trigger a short-term buy at the grossly oversold area on Thursday.
After pulling back from the top to the mid-range earlier of the week, the 14-day relative strength index recovered gradually to settle at a reading of 61 points yesterday.
The daily moving average convergence/divergence histogram resumed the upward expansion against the daily trigger line to retain the bullish note. It issued a buy on Dec 16, last year.
Technically, indicators are painting a pretty encouraging landscape, suggesting prices may strengthen in the short-term. If they can clear the RM1.25 hurdle and tear down the heavy barrier of RM1.35 decisively, a re-test of the historical apex of RM1.90, established on Oct 29, 2007, may be on the cards. As for the downside, trailing stop-loss exit is pegged at the 21-day SMA. - by KM Lee.
The comments above do not represent a recommendation to buy or sell.
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