Monday, November 12, 2012

Stock Of The Week : INTEGRATED Logistics Bhd (ILB)

INTEGRATED Logistics Bhd (ILB) scaled to a high of RM1.07 during intra-day session, also its best level since April last year amid follow-through bargain hunting interest.

Based on the daily chart, this stock has been on the mending path since bottoming out at a 2-year low of 66 on Dec 12, 2011, but the recovery process appeared bumpy. Nevertheless, it has carved out an ascending channel and as long as prices continue to flirt within the existing bullish wave, supported by healthy volumes, investors can expect more advances in the pipeline.

Apparently, the daily slow-stochastic momentum index suggests an overbought condition. Though the oscillator per cent K had tripped below the oscillator per cent D to trigger a short-term sell at the top, it could not be confirmed for now, simply because both the oscillators were still retaining the posture above the 80% bullish line. Similarly, the 14-day relative strength index climbed deeper into the bullish zones to close at the 92 points level, up from late last month's reading of 32 points.

Meanwhile, the daily moving average convergence/divergence histogram expanded sharply and positively against the daily signal line to keep the bullish note. It had issued a buy call on Nov 6. Technically, indicators are firm despite reaching the overbought territory, implying ILB is likely to sustain the upward thrust on bullish extended-mode in the immediate term.

Initial resistance is expected at the RM1.10-RM1.16 band, of which a clear breakout may see the prevailing trend turning more bullish, targeting the RM1.38-RM1.40 in the medium term.Current support is envisaged at the RM1 mark. Stronger support is seen at the 95 sen level.


 By K.M.Lee, thestar.com.my

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

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