Monday, December 12, 2011

Stock Of The Week : SYF Resources Bhd

AFTER jumping from the most recent lows of 45 sen on Nov 23 to achieve an apex of 73.5 sen on Dec 5, SYF Resources Bhd shares went through a brief correction period owing to an apparent profit-taking activity, which saw prices pulling back to the 14-simple moving average of 60 sen.

Thereafter, fresh bargain hunting buying emerged, lifting them to a high of 75 sen during intra-day session before reversing to end down half a sen to 69.5 sen yesterday.

Based on the daily bar chart, this counter appears on the recovery path after a long bearish cycle. Perhaps, investors can consider accumulating some, if one is optimistic while prices still are flirting at an attractive level.

Turning to the indicators, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index were on the rise, ending approximately at 78% and 75% respectively yesterday. It had issued a short-term buy at the bottom on Nov 23,

In addition, the daily moving average convergence/divergence histogram continued to expand positively against the daily signal line to retain the bullish note.

Elsewhere, the 14-day relative strength index reversed up from the mid-range to settle at 65 points level yesterday.

Technically, the encouraging landscape suggests SYF Resources may firm in the immediate term. A push above the 77 sen barrier may propel the shares up to challenge the greater resistance of 89.5 sen. The next upper hurdle is envisaged at the 97 sen mark, of which a successful penetration will see the fortune of this stock changing for the better.

Current support is anticipated at the 65 sen level. An additional floor is pegged at the 60 sen line.


By K.M. LEE
● The comments above do not represent a recommendation to buy or sell.

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