RENEWED bargain hunting interest lifted YTL Power International Bhd from a seven-year low of RM1.53 level on May 18 to a high of RM1.80 on June 25 before pausing for a breather in the wake of light profit-taking activity.
Based on the daily chart, this stock was trapped within a narrow range for eight trading days, undergoing consolidation process before improving slightly, which saw prices breaching the RM1.80 mark briefly to close at RM1.81, up one sen yesterday.
For now, the breakout is seen as a “whipsaw” but on the brighter side, the bulls may be giving all of us a strong hints that the present healthy consolidation phase will be coming to an end soon and a rally is about to kick off.
If the breakthrough is real, then, the immediate upside objective would be to challenge the RM1.90-RM1.93 band. Greater overhead resistance is expected at the RM2.10 line.
Elsewhere, the daily slow-stochastic momentum index was firming. Its oscillator per cent K reversed up from the mid-range and climbed over the oscillator per cent D to trigger a short-term buy in mid-week. The 14-day relative strength index also maintained the posture above the 70 points line to retain the bullish note.
Meanwhile, the daily moving average convergence/divergence histogram continued to climb in tandem with the daily signal line. It had issued a buy on May 23.
Technically, indicators are pretty encouraging, implying a resumption of recovery is likely to come about shortly. Current support is seen at RM1.75. An additional floor is pegged at the 21-day simple moving average of RM1.72. - BY K.M.LEE
● The comments above do not represent a recommendation to buy or sell.
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