EP Manufacturing Bhd retraced from the most recent peak of 81 sen on April 4 to a low of 71.5 sen on April 26 during the recent correction process before bouncing off strongly in the wake of renewed bargain buying momentum.
The shares hit an intra-day high of 83 sen in early deals, the best since February 2005, but trimmed advances slightly later to close at 78.5 sen, up two sen, backed by bigger trading volumes yesterday.
Based on the daily bar chart, a bullish breakout has been sighted, signalling the resumption of a rally going forward. Perhaps, those who are already in it can consider holding on to their shares, looking for more capital gains, if one is optimistic.
Elsewhere, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index were firming. It triggered a short-term buy at the mid-range on Thursday.
Also on the rise, the 14-day relative strength index improved significantly from a reading of 60 on Monday to close at around the 74 points level yesterday.
Meanwhile, the daily moving average convergence/divergence histogram resumed the upward expansion against the daily signal to retain the bullish note. It flashed a buy a month ago.
Technically, the landscape is pretty encouraging, suggesting prices may sustain the upward thrust on extended buying. If prices can overcome an initial overhead resistance of 85 sen, they are poised to challenge to RM1 psychological mark in the near term.
Important support is pegged at the 14-day simple moving average, now resting at 73 sen and still advancing. - By K.M. LEE
● The comments above do not represent a recommendation to buy or sell.
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