Thereafter, investors took the excuse of the great volatility of the broader market to book gains and consequently, prices came under pressure to retreat, breaking down from the 14-day simple moving average (SMA) and the 21-day SMA, and violating the 50-day SMA slightly to a low of RM1.43 on August 28 before bouncing off on renewed bargain hunting interest.
This counter recovered to a high of RM1.69 during intra-day session but finished up three sen to RM1.68 yesterday.
Based on the daily bar chart, LBS was saved by a relief recovery in the past couple of days and it remain bullish, as long as the short-term ascending line, resting at RM1.45 and still rising, continues to support prices while trailing exit is pegged at the RM1.43 floor. Elsewhere, the daily moving average convergence/divergence histogram sustained the downward expansion against the daily trigger line to stay bearish after issuing a sell signal on Aug 27.
But in stark contrast, the daily slow-stochastic momentum index was seen advancing from the bottom. It had triggered a short-term buy in mid-week. Also on the rise, the 14-day relative strength index (RSI) improved slightly from a reading of 35 on Tuesday to settle at the 44 points level yesterday.
Technically, the firming daily slow-stochastic momentum index and the 14-day RSI offer hopes of more recovery in the short term. If prices can overcome the 14-day SMA of RM1.76 in a convincing style, a re-test of the recent high of RM1.97 may be on the cards.
Greater resistance is seen at the RM2 mark, of which a successful breach would signal a rally continuation, enroute to challenge the monster resistance of RM2.31. - by K.M.Lee, thestar.com.my
The comments above do not represent a recommendation to buy or sell.
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