BIMB Holdings Bhd tripped into correction mode after peaking out at an 11-year high of RM2.47 on July 6, owing to apparent profit-taking activity.
During the process, prices came under pressure to retrace, touching a low of RM1.56 on Sept 26 before bouncing off in the wake of renewed bargain-hunting interest.
This stock scaled to a high of RM2 during intra-day session before trimming gains slightly to settle at RM1.94, up eight sen.
Apparently, prices had penetrated the short-term descending line, suggesting the recent correction phase has ended but more observation still is needed.
Based on the daily bar chart, a decisive breach of the pivotal 50-day simple moving average of RM2, coincidentally, also yesterday's intra-day high would give investors the confirmation that this stock is indeed on a new leg of uptrend.
The oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index were seen inching higher after flashing a short-term buy at the neutral zones on Thursday.
Also on the rise, the 14-day relative strength index improved steadily from the mid-range to end at the 71-point level.
The daily moving average convergence/divergence histogram also continued to expand positively against the daily signal line to stay bullish. It had issued a buy in mid-week.
BIMB Holdings may strengthen on follow-through interest, targeting the RM2.20-RM2.23 band, of which a successful breakthrough would lead to a re-test of the previous rally peak of RM2.47. Crucial support is pegged at RM1.90.
By K..M.Lee, thestar.com.my
● The comments above do not represent a recommendation to buy or sell.
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