NAIM Holdings Bhd scaled to nearly a one-year high of RM2.17 on Thursday amid extended strong buying momentum.
Thereafter prices turned range-bound on follow-through bargain hunting interest offsetting light profit-taking activity, ending up one sen to RM2.14 yesterday.
Based on the daily chart, this stock has been on the rise from the RM1.77 level since Feb 7. Following a bullish breakout on Wednesday, it is very likely prices would continue to strengthen going forward.
Hence, should there be a pullback in the share prices in the short term, it is viewed as an opportunity for investors to accumulate more.
Elsewhere, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index were fast reaching the overbought territory, but they show no signs of weakening, at least for now. It had issued a buy call late last month.
Also on the climb, the 14-day relative strength index settled at the 91 points level yesterday, up from the neutral zone on Feb 6. A reading above 70 suggests overbought condition.
Meanwhile, the daily moving average convergence/divergence histogram sustained the steady upward expansion against the daily trigger line to stay bullish.
Technically, indicators are encouraging, implying prices may firm on bullish extended-mode, targeting to challenge the heavy resistance of RM2.40 before taking a breather. The next upper strong hurdle is resting at the RM2.64-RM2.70 band. Current support is envisaged at the RM2-RM2.06 range. An additional floor is pegged at the 14-day simple moving average of RM1.96.
By K.M. Lee, thestar.com.my
● The comments above do not represent a recommendation to buy or sell.
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