Monday, March 21, 2011

Stock Of The Week : Eksons Corp Bhd

AFTER hitting a 40-month high of RM1.32 on Thursday, Eksons Corp Bhd shares turned range-bound on profit-taking activity offsetting bargain hunting interest, ending down three sen to RM1.24 yesterday.

Based on the daily bar chart, this stock has been mending nicely since bottoming out at 48 sen on March 17, 2009, albeit a little volatile.

With the bulls maintaining their position on the right course and the prevailing trend still constructive, it appears there be more upside potential in the pipeline. Perhaps, traders can consider accumulating more, especially on weakness.

The oscillator per cent K and the oscillator per cent D of the daily slow-stochstic momentum index sustained the upward thrust after flashing a short-term buy at the mid-range on Tuesday,

The past week saw the 14-day relative strength index climbing from a reading of 50 on Monday to end at approximately 85 points level yesterday.

Meanwhile, the daily moving average convergence/divergence histogram expanded sharply and positively against the daily signal line to retain the bullish note. It flashed a buy on Monday.

Technically, the positive reading suggests Ekson is likely to attract buying momentum, thus driving prices to greater heights going forward.

If they can charge out of the relatively strong overhead resistance band of RM1.36-RM1.40, a re-test of the previous rally peak of RM1.86, established on Feb 21, 2007, can be expected.

Initial support is envisaged at the RM1.20-RM1.22 range. - By K.M. LEE

● The comments above do not represent a recommendation to buy or sell.

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