Stock Of The Week : FABER

FABER Group Bhd has been trapped within a moderate band on bargain-hunting interest alternated with profit-taking, lasting more than two months, undergoing a period of correction.

The sideways pattern came about following a recovery from the RM1.34 level on Dec 19 last year.

Based on the daily bar chart, it looks like the recent correction phase is coming to an end soon and the next probable wave would be an uptrend continuation. Perhaps, investors can consider taking up a position, betting on a potential breakthrough going forward.

The stock hit an intra-day high of RM1.83 but ended at RM1.74, down four sen yesterday. Despite the lower close, the daily slow-stochastic momentum index retained the buy call, but the oscillator per cent K had indicated a tentative topping out sign near the overbought reading of 80%.

Elsewhere, the daily moving-average convergence/divergence histogram was bullish, climbing above the daily trigger line to issue a buy signal.

The 14-day relative strength index extended the upward thrust to end at 70 points from a reading of 36 points.

Technically, most of the short-term indicators are positive, implying a bullish breakout may be in the pipeline.

A decisive breach of the RM1.85 mark, followed by the RM1.91 stiff barrier would signal a new leg of uptrend, en route to the RM2.32 level in the near term.

A crucial support is pegged at the RM1.65 line. - By K.M. LEE


● The comments above do not represent a recommendation to buy or sell.