The prevailing trend was weak and persistent selling prolonged the pullback process. However, just when the shares appeared defenceless and in great danger of re-testing the previous bearish cycle bottom of 33 sen, renewed bargain-hunting interest came to the rescue.
In the wake of fresh nibbling, prices bounced off the 36.5-sen floor on June 6 to achieve an intra-day high of 48 sen yesterday, the best level in almost three months.
Based on the daily bar chat, HIL had penetrated the last 100-day simple moving average on our radar screen in early trading but it failed to keep the posture above this line at the close. Strong resistance is pegged at the mid-tern descending line of 52 sen, of which a decisive penetration would see the fate of this stock turning around for the better, targeting the upper resistance band of 62.5-65 sen.
Apparently, the daily slow-stochastic momentum index was rising. Mirroring the uptrend, the 14-day relative strength index climbed from the neutral zones on Tuesday to settle at 71 points yesterday.
Meanwhile, the daily moving average convergence/divergence histogram expanded sharply against the daily signal line to retain the bullish note. It had issued a buy in late-April.
Technically, HIL may be on a new recovery path.
Support is seen at the 41.5 sen, followed by the recent lows of 36.5 sen levels. The lower 33 sen mark will act as a base. - By K.M. Lee
The comments above do not represent a recommendation to buy or sell.
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