This stock was chosen for our readers then, as we see a great potential of the young bulls making a major breakthrough going forward. Soon after prices staged a mild but pretty encouraging rebounds from an all-time low of 31.5 sen on Aug 27. Clearly, the bulls had progressed the past several days. In spite of the broader market undergoing a correction phase on most part of the week, they continued to enjoy solid support from investors.
Meanwhile, prices had pierced through the last 200-day simple moving average of 55 sen on our radar screen on Tuesday to achieve a high of 79.5 sen during intra-day session yesterday, the best level in 13-month before ending at 76 sen, up six sen.
Based on the daily chart, a major breakout has happened, suggesting a bullish turnaround. Theoretically, there is more upside in the pipeline, but trading volumes must expand accordingly to support the trend ahead. For now, the daily slow-stochastic momentum index and the 14-day relative strength index are painting a growing overbought pictogram, implying the bulls are likely to pause for air soon.
However, given the steady upward expansion of the daily moving average convergence/divergence histogram against the daily signal line, indicating the underlying tone of this stock remains bullish, any pullback is likely to be shallow and temporary. If that happens, it is viewed as an opportunity for investors to accumulate more.
Stiff resistance is expected at the 80 sen-82 sen range. The next upper strong barrier is resting at the 97 sen-RM1 band. Current support is envisaged at the 70 sen mark, followed closely by the 60 sen-61 sen floor. — By K.M. LEE. thestar.com.my
The comments above do not represent a recommendation to buy or sell.
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