Thereafter they rebounded slightly to trade range-bound briefly, undergoing consolidation before charging ahead in the wake of fresh buying momentum.
E-Force hit a high of 48.0 sen during intra-day session, the best level since November 2010, but finished up half a sen to 45.0 sen.
Based on the daily bar chart, the steep rise was evident only in the past several days, and it came about following a major breakthrough of the short-term “double-top” formation of 40.5 sen in mid-week.
Going forward, this counter is poised to sustain the rise in the immediate term, with the bulls challenging the historical peak of 55.5 sen, which was established on Aug 12, 2010.
A successful penetration of this heavy barrier would open the gate for the bulls to explore unknown territory.
Elsewhere, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index were on the rise, ending at 90% and 64% respectively. It had issued a short-term buy at the neutral area on Tuesday.
Mirroring the trend, the 14-day relative strength index improved rapidly from the mid-range level in mid-week to end at 85 points.
Meanwhile, the daily moving average convergence/divergence histogram expanded sharply against the daily signal line to keep the bullish note. A buy call was issued on Oct 4.
Technically, indicators are painting a promising pictogram, implying E-Force is likely to advance in the short term.
Concrete support is envisaged at 40.5 sen. – By K.M. Lee, thestar.com.my
The comments above do not represent a recommendation to buy or sell.
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