Stock Of The Week : AFFIN Holdings Bhd

AFTER undergoing a round of shallow correction, which witnessed prices retracing from the RM3.11 level in late May to a low of RM3.01, Affin Holdings Bhd sprang back to life in the wake of fresh buying momentum, driving prices to a high of RM3.38 during intra-day session yesterday, the best level since August last year.

Based on the daily bar chart, prices had penetrated the mid-term descending line as well as the significant resistance barrier of RM3.29, supported by bigger trading volumes. Theoretically, the double breakout would clear the way for more scaling going forward, targeting the RM3.50-RM3.60 band in the immediate term, of which a successful push is likely to open the windows for the bulls to challenge the previous massive rally peak of RM3.73, set on Jan 12, last year.

Elsewhere, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index were on the rise. It had issued a short-term buy at the neutral area on Thursday.

Mirroring the trend. the 14-day relative strength index improved rapidly from the mid-range to settle at the 80 points level.

In addition, the daily moving average convergence/divergence histogram continued to expand upward against the daily signal line to retain the bullish note. A buy was triggered on May 28.

On the back of an encouraging reading from technical indicators, Affin Holdings will probably sustain the upward thrust amid follow-through interests in the short-term.

Current support is envisaged at the RM3.09 mark and an additional floor is pegged at the RM3 level. By K.M. Lee


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