KIAN Joo Can Factory Bhd extended its upward thrust amid persistent buying interest, sending the stock to a high of RM2.56 during intra-day session yesterday, also the best level since August 1997.
Based on the daily bar chart, this counter has been rising rapidly from the 50-day simple moving average (SMA) of RM1.77 since mid-March, carving out a steep bullish wave.
Apparently, the prevailing bulls show no sign of tapering off but are looking more energetic and aggressive. Their actions, supported by healthy trading volumes, suggest more uptrend in the pipeline.
Elsewhere, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index quickly moved back to the bullish zone after flashing a short term “buy” at the 72% level on Thursday.
The past week also witnessed the 14-day relative strength index continuing to flirt as the bullish extended-mode territory.
In addition, the daily moving average convergence/divergence histogram sustained the upward expansion against the daily signal line to retain the positive note. It issued a buy on March 23.
Technically, the stock may firm on follow-through buying momentum as it rides on the promising landscape.
To the upside, there is no major resistance in sight until the RM3.00-RM3.03 band.
Initial support is envisaged at the RM2.40 level and crucial floor is pegged at the 14-day SMA, now resting at RM2.25 and still rising. - By K.M. Lee
The comments above do not represent a recommendation to buy or sell.
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