INSAS Bhd scaled to a high of 61 sen in early session, the best level since January 2010 on follow-through buying interest before paring gains slightly owing to an apparent mild profit-taking activity. This stock finished up one sen to 59.5 sen yesterday.
Apparently, prices had penetrated the most recent peak of 59 sen, supported by bigger trading volumes. The successful breakout would signal the continuation of an upward trend.
Based on the daily chart, Insas shares are poised to challenge the previous major rally peak of 63.5 sen in the short-term. If they can overcome this stiff barrier decisively, the prevailing trend is expected to turn more bullish. Greater overhead resistance is seen at the 73 sen level, followed by the 85 sen hurdle and the next, at the RM1 mark.
Elsewhere, the daily slow-stochastic momentum index showed an overbought condition, with the oscillator per cent K and the oscillator per cent D weakening gradually after triggering a short-term sell at the top in mid-week. However, they retained their posture a shade above the 80% bullish line. In stark contrast, the other short-term measurement, namely the 14-day relative strength index extended the upward thrust to keep the bullish note. At a reading of 90, there is still room for more climbing before reaching the very overbought situation.
Meanwhile, the daily moving average convergence/divergence histogram continued to expand positively and steadily against the daily signal line to stay bullish. It had issued a buy signal on Sept 13. Most of the indicators are painting an encouraging landscape, implying Insas is poised to re-test the previous rally peak of 63.5 sen. A breach of this heavy barrier would see prices sustaining the upward thrust on bullish extended-mode.
Initial support is resting at 57 sen. An additional floor is pegged at the 21-day simple moving average of 53 sen. - By K.M. LEE, thestar.com.my
The comments above do not represent a recommendation to buy or sell.
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