Stock Of The Week : MK Land

MK Land Holdings Bhd shares reversed down from the 13-month peak of 46 sen on Feb 8 to a low of 34.5 sen on Wednesday amid extended correction mode owing to an apparent profit-taking activity before bouncing off slightly in the wake of light bargain hunting interest. The stock finished at 37 sen, up half a sen yesterday.

Based on the daily bar chart, it looks like the shares of MK Land had corrected enough after the recent weakness and now attempting to establish a new leg of upward thrust. Perhaps, investors can consider taking up a position, if one is optimistic while prices are flirting at an attractive level. Otherwise, wait for the breakout for confirmation.

Elsewhere, the daily slow-stochastic momentum index was inching up steadily. Its oscillator per cent K climbed over the oscillator per cent D to trigger a short-term buy deep in the oversold area on Feb 23.

Mirroring the positive trend, the 14-day relative strength improved moderately from the bottom to a reading of 42 points yesterday.

Though the daily moving average convergence/divergence histogram still was trending below the daily signal line to retain the sell call, the landscape clearly shown the downward momentum had paused.

Technical indicators suggest a steadier trend in the intermediate term, with initial resistance expecting at the 40 sen mark. The next upper strong hurdle is resting at the 47.5 sen level, of which a decisive major breakout will clear the path for the bulls to challenge the heavy barrier of 80 sen in the medium term.

Trailing stop loss exit is pegged at the 33 sen line. - By K.M. LEE, thestar.com.my

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