AFTER peaking out at a seven-month high of 47.5 sen on Feb 14, Maxwell International Bhd succumbed to fresh profit-taking pressure only to flip once again to resume its correction process, which saw its shares dropping to an 11-month low of 31.5 sen on Sept 12.
Thereafter, prices turned range-bound, but with a mild upward bias with renewed bargain hunting interest offsetting light selling.
This counter was listed on Jan 6 last year on the Main Market under the consumer products sector. Based on the daily chart, slightly more than a month into listing, Maxwell shares slip below the 54 sen line and since then have never recovered to its IPO level.
With prices trading at a discount and appearing to make an effort in building a base for recovery, it is perhaps time to consider accumulating.
Elsewhere, the daily moving average convergence/divergence (MACD) histogram expanded upward against the daily signal line to stay positive. It had issued a buy a month ago.
Meanwhile, the 14-day relative strength index improved slightly from the mid-range to end at 63 points.
However, the oscillator per cent K tripped below the oscillator per cent D of the daily slow-stochastoc momentum index to trigger a sell near the overbought area yesterday.
Technically, indicators, especially the daily MACD are on the mend, suggesting prices may firm, albeit on a slow pace in the short term.
Current resistance is envisaged at the 37 sen mark. A decisive push above the next upper hurdle of 40 sen is likely to see the fate of this counter turning brighter.
Important support is set at the 31.5 sen line.
By K.M. LEE, thestar.com.my
The comments above do not represent a recommendation to buy or sell.
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