The counter, however, has much potential to change for the better going forward.
Based on the daily bar chart, the counter has been on the rise since early this year, up from 35 sen on Jan 3 to a high of 57.5 sen on Thursday before pausing owing to an apparent profit-taking activity. Unlike in the past, the latest round of upward thrust was supported by volume. This may indicate investors are returning to Xian Leng.
The daily slow-stochastic momentum index looks positive, with the oscillators per cent K and per cent D flirting the bullish extended-mode territory. The 14-day relative strength index ended higher at 80.5 points yesterday.
And the daily moving-average convergence/divergence histogram continued to expand upward against the daily signal line to stay bullish. It issued a buy on Feb 20.
Indicators suggest this stock is bullish. Despite being in an overbought position, prices could still advance, leading to a possible major breakout in the short term, if the recent buying momentum is real and persistent.
Heavy overhead resistance is pegged at the 62 sen barrier, a successful penetration of which would signal a bullish turnaround, paving the way for prices to challenge the upper resistance of 80 sen. The greater hurdle is envisaged at the 90 sen mark.
Current support is resting at the 4851 sen band.
By K.M. LEE
● The comments above do not represent a recommendation to buy or sell.
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