OLYMPIA Industries Bhd tested the 100-day simple moving average 31 sen in mid-March during the recent correction phase before bouncing off in the wake of renewed buying momentum. The shares finished up half sen to 41 sen, off an intra-day high of 43.5 sen yesterday.
Based on the daily bar chart, prices had carved out a short-term ascending channel following recent gains and it looks like they are now on the recovery track. Going forward, Olympia Industries may extend the upward momentum, if trading volumes continue to stay robust.
The oscillator per cent K remained flirting above the oscillator per cent D of the daily slow-stochastic momentum index to retain the buy call, ending approximately at the 75.5% and 74% respectively yesterday.
The past week witnessed the 14-day relative strength index firming from a reading of 60 points earlier of the week to settle at the 70 points level yesterday.
Elsewhere, the daily moving average convergence/divergence histogram sustained the upward expansion against the daily trigger line to keep the bullish note. It flashed a buy on March 22.
Analysis on the technical indicators suggest there still are upside potential in store in this counter. Perhaps, investors can consider taking up a position, if one has faith in it.
Initial resistance is expected at the 48 sen line, of which a successful penetration may lead to a re-test of 64 sen heavy barrier, which is the previous rally peak, established on Feb 8.
Trailing stop-loss is pegged at the 38 sen mark, which is two ticks below the ascending line of 39 sen to avoid a whipsaw. - By K.M. LEE
● The comments above do not represent a recommendation to buy or sell.
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