The process was deemed healthy, as it managed to maintain the posture around a narrow range, with a mild upward bias while prices were undergoing a period of consolidation.
Based on the daily bar chart, this counter appeared least affected by the recent global markets meltdown. With the prevailing trend remaining constructive, it looks like there are more upside in store.
Elsewhere, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index continued to strengthen after flashing a short-term buy at the bottom on Tuesday.
Likewise, the 14-day relative strength index improved rapidly from the mid-range to settle at the 71 points level yesterday.
In addition, the daily moving average convergence/divergence histogram climbed over the daily signal line to trigger a buy yesterday.
From the price action and development of this stock, combined with the positive technical signal from the indicators, they suggest Denko shares may firm in the immediate term.
A breakout from the recent high of 54 sen would signal a rally continuation, enroute to the 70 sen mark.
The next upper hurdle is envisaged at 80 sen, followed by the 90 sen level.
Initial support is seen at the 21-day simple moving average of 42 sen. An additional floor is pegged at 37.5 sen. — By K.M. Lee, biz.thestar.com.my.
● The comments above do not represent a recommendation to buy or sell.
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