OLYMPIA Industries Bhd recovered from the 19-month lows of 19.5 sen on Sept 26 to a high of 30 sen on Oct 19 before tripping into correction owing to an apparent profit-taking activity.
During the consolidation period, this stock retraced back slightly to test the 100-day simple moving average line of 26.5 sen on Oct 25 before turning range-bound, which saw prices ending at flat at 27.5 sen yesterday.
Based on the daily bar chart, it appears Olympia is making an effort to resume the recovery process after a short breather, with trading volumes growing. Perhaps, investors can consider taking up a position, if one is optimistic.
Apparently, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index were approaching the oversold area following a pull-back from the top late last week.
Similarly, the 14-day relative strength index retraced further from the top to end at the 58 points level yesterday.
In stark contrast, the daily moving average convergence/divergence histogram retained the buy call, flirting above the daily signal line.
Technically, it is about time this counter continue scaling after undergoing a healthy consolidation.
A successful penetration of the heavy resistance barrier of 33 sen would give investors the confirmation that prices are on the uptrend continuation mode, enroute to the 43.5-sen level or 53 sen-53.5 sen band and probably a re-visit to the previous rally peak of 64 sen later.
Support is pegged at the 26-sen floor, which is also the trailing stop-loss exit. - By K.M. Lee
● The comments above do not represent a recommendation to buy or sell.
No comments:
Post a Comment