RIMBUNAN Sawit Bhd attempted to resume the rally two months after peaking out temporarily at an all-time high of RM1.22 on Feb 20 last year, but momentum fizzled out at the RM1.16-level on lack of buying conviction.
Subsequently, prices retreated and after spending several months in the doldrums, the stock made another move to advance. Again, the effort was futile, as the upward thrust once again punctured at the RM1.16 barrier.
Thereafter, shares were on the downtrend, which saw prices touching a 16-month low of 72 sen on March 1 before rebounding marginally on renewed bargain-hunting interest.
This stock hit to a high of 78 sen during intra-day session yesterday. Based on the daily chart, Rimbunan Sawit appeared to have found the bottom and is currently in the midst of building up the pace for recovery. But further observation is needed before we could confirm the trend ahead.
Technically, the daily slow-stochastic momentum index had indicated a tentative curving up sign from the mid-range.
Likewise, the 14-day relative strength index improved marginally from a reading of 42 on Thursday to end at the 64 point-level yesterday.
Elsewhere, the daily moving average convergence/divergence histogram expanded positively against the signal line. It had issued a buy call on March 6. Indicators are looking better, implying prices may firm in the short term.
Initial resistance is envisaged at the 50-day simple moving average (SMA) of 79 sen. The next upper hurdle is resting at the 84-sen line, also the 100-day SMA, of which a clear penetration would signal a bullish reversal, en route to challenge the greater resistance of 93.5 sen.
Important support is pegged at the recent ebb of 72 sen, of which a crack would signal a downtrend continuation.
BY K.M.LEE, thestar.com.my
The comments above do not represent a recommendation to buy or sell.
The Most Essential Lesson for all Investors - Koon Yew Yin
-
*The Most Essential Lesson for all Investors - Koon Yew Yin *
*Author: Koon Yew Yin | Publish date: Sat, 21 Nov 2015, 11:02 AM *
Many of my close friends an...
No comments:
Post a Comment