UEM Land Holdings Bhd touched a one-year low of RM1.63 in mid-week amid extended correction before rebounding moderately in the wake of light bargain-hunting nibbling, encouraged by an improving primary market.
Based on the daily bar chart, UEM Land has been in correction mode since peaking out temporarily at an all-time high of RM3.40 on Jan 13 last year. After languishing in the doldrums for so long, shares are beginning to show signs of stabilising, with the recent selling pressure appearing drying up and the evidence of buying momentum the past couple of days.
Perhaps, traders can consider accumulating while prices are flirting at an attractive level.
Turning to the daily slow-stochastic momentum index, the oscillator per cent K and the oscillator per cent D were inching up from the oversold area after triggering a short-term buy on Thursday.
Tracing a similar trend, the 14-day relative strength index improved rapidly from a reading of 12 in mid-week to close at the 40 points level yesterday. Though the daily moving average convergence/divergence histogram remained hovering below the daily trigger line to keep the sell signal, it had indicated a convergence pictogram.
Technically, indicators are mending gradually, implying UEM Land shares may firm in the intermediate term, with initial resistance anticipating at the RM1.84 level.
The next upper hurdle is expected at the RM1.95-RM2 band. A clear penetration of the higher 200-day simple moving average of RM2.12 would signal a bullish turnaround. Pivotal support floor is pegged at the RM1.54 line.
By K.M. LEE, thestar.com.my
The comments above do not represent a recommendation to buy or sell.
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