LBS Bina Group Bhd retraced back to the 100-day simple moving average of 71 sen on Aug 29 during the recent correction phase before bouncing off in the wake of fresh bargain hunting buying momentum.
The shares recovered to a high of 83 sen during intra-day sesssion but finished at 82.5 sen, up five sen yesterday.
Based on the daily bar chart, this stock is making an effort to establish a new leg of upward trend and judging by the growing volumes, which indicates interest is returning, investors can look forward to more advances in the immediate term.
The positive development on the technical measurements further support the prospects of a steadier trend ahead.
Apparently, the 14-day relative strength index was strong, climbing from a reading of 26 to settle at the 70 points level yesterday.
After flashing a short-term buy at the bottom the previous Friday, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index continued to strengthen, ending at the 88% and 83% respectively.
Elsewhere, the daily moving average convergence/divergence histogram sustained the upward expansion against the daily trigger line to retain the bullish note. It had issued a buy signal in mid-week.
Initial resistance is expected at the 84 sen mark, of which a successful penetration may lead to a re-test of the previous rally peak of 95.5 sen, set on July 7. The next upper heavy barrier is resting at the RM1.05 level.
Current support is envisaged at 75 sen, followed closely by the 70 sen floor. - By K.M. Lee
● The comments above do not represent a recommendation to buy or sell.
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