KUB Malaysia Bhd fell to a 12-month low of 47.5 sen on Sept 27 during the recent correction process before bouncing off in the wake of fresh bargain hunting interest, driving prices to a high of 72.5 sen during intra-day session yesterday.
It looks like the recovery could be developed further to the upside, with trading volumes expanding positively, implying investors are flocking back to this counter.
Based on the daily bar chart, prices had breached the 200-day simple moving average (SMA) of 72 sen, indicating a tentative bullish reversal, which may open the windows for a re-test of the previous rally peak of 96 sen, established on Jan 17, and the RM1 mark psychological level going forward.
Elsewhere, after triggering a buy at the neutral area on Oct 6, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum continued to advance rapidly, and despite reaching the overbought area, they show no sign of abating just yet.
Likewise, the 14-day relative strength index sustained the steady upward thrust to settle at a reading of 85 points yesterday.
In addition, the daily moving average convergence/divergence histogram expand positively and sharply against the daily trigger line to retain the bullish note. It had flashed a buy on Oct 5.
Analysis suggests prices are poised to advance on the back of an encouraging technical landscape.
Initial support is envisaged at the 64 sen-65 sen band and the next lower floor is pegged at the 50-day SMA of 60 sen.
By K.M. Lee, thestar.com.my
● The comments above do not represent a recommendation to buy or sell.
No comments:
Post a Comment