GLOBAL Oriental Bhd (GOB) shares hit a high of 94.5 sen during intra-day session on Aug 19, the best level since March 19, 2008 before retreating marginally to trade range-bound on continuous bargain hunting interest alternated with light profit-taking selling, undergoing a healthy consolidation following the recent rally.
Based on the daily bar chart, the prevailing trend of this counter remains constructive, with prices flirting above all the moving averages on our radar screen.
GOB also was one of the least affected stock despite the broad-market suffering great volatility the past week.
Meanwhile, trading volume was thin while its share price continued to correct the past several days, implying that those who are already in it, still have faith, holding on to the shares.
Elsewhere, the daily moving average convergence/divergence histogram retained the posture above the daily signal line to stay positive. It had called for a buy a week ago.
On the contrary, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index were on the slide after triggering a short-term sell at the top last Thursday.
Mirroring the trend, the 14-day relative strength index weakened from a reading of 76 on Monday to end at the 48 points.
Technically, indicators are mixed, suggesting an extended sideways consolidation until a clearer picture emerges.
A breach of the 95 sen hurdle would open the windows for the bulls to fill the RM1.10-RM1.40 huge gap in the near term. The next upper resistance is resting at the RM1.76-RM1.80 band.
Important support is pegged at the 50-day SMA of 81 sen, of which a crack will have a negative impact going forward. — By K.M. Lee, thestar.com.my
The comments above do not represent a recommendation to buy or sell.
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