IHH Healthcare Bhd (IHH) has been on the upward trend since its maiden listing on Bursa Malaysia's Main Market under the Trading/Services sector on July 25, last year, albeit on a gradual basis.
The stock hit an all-time high of RM4.80 in early session on May 6, up RM1.05 in response to the post 13th general elections frenzy buying on the broad market, but when the euphoria tapered off later, prices reacted accordingly, coming off the peak to settle 15 sen higher at RM3.90.
Thereafter, the shares fluctuated within a moderate band, but with a mild upward bias on consolidation, tracing out quite a similar pattern of the principal market indicator, the FBM KLCI.
With global equities expecting to experience greater volatility and influencing the direction of the local bourse, IHH may be a safe bet, as a defensive counter.
Apparently, the daily slow-stochastic momentum index had issued a sell at the top, but it could not be confirmed for now.
Elsewhere, the 14-day relative strength index hit a high of 71 points on Thursday before weakening slightly to end at the 60 points level.
In stark contrast, the daily moving average convergence/divergence histogram had crossed above the daily signal line to trigger a buy yesterday.
Given the mixed technical reading, IHH shares are likely to continue fluctuating within a modest range, until a clearer picture emerges.
Based on the daily chart, a successful penetration of the relatively strong overhead barrier of RM4.20 may see the bulls turning more aggressive, clearing the way for a re-test of the historic high of RM4.80 in the medium-term.
Initial support is seen at the RM3.83 floor. An additional floor is pegged at the RM3.80 mark. - By K.M. Lee, biz.thestar.com.my
● The comments above do not represent a recommendation to buy or sell.
No comments:
Post a Comment