JCY International Bhd was on the downward spiral over the past 10 months, which saw its shares dropping from a historical peak of RM1.98 on May 3, last year to an all-time lows of 57.5 sen on March 15 amid extended correction process.
Renewed bargain hunting interest emerged, helping prices to bounce off the ebb to achieve a one-month high of 70.5 sen during intra-day session yesterday.
Based on the daily bar chart, little has changed but positive developments over the past week offered a ray of hope that the prevailing bearish phase of this counter may end soon, with prices testing the immediate overhead barrier of the 50-day simple moving average (SMA). A break above this hurdle, followed by a successful penetration of the 100-day (SMA) line, resting at the 80 sen mark would signal a bullish reversal. Perhaps, optimistic traders can consider taking up a position.
Apparently, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index were channelling at the bullish extended-mode territory. It flashed a short-term buy at the bottom on March 16. After flashing a buy on March 19, the daily moving average convergence/divergence histogram continued to expand upward against the bullish daily signal line.
Meanwhile, the 14-day relative strength index sustained the upward thrust from the neutral area to finish at 72 points yesterday. Technically, prices may firm in the short term, with indicators painting an encouraging landscape and growing volume.
If a bullish reversal pattern comes about, the next target to look for would be the RM1-RM1.03 level. The all-time lows of 57.5 sen will now act as the base. - By K.M. LEE
● The comments above do not represent a recommendation to buy or sell.
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