Thereafter, prices turned sideways on consolidation, lasting more than a month before inching up gradually in the wake of renewed bargain hunting interest amid speculation of a proposal to privatise the national carrier.
Though the Government had dismissed the talk and said that MAS was already on the right path to recovery, some investors continued to play up this old theme song sporadically to generate interest and helped boost prices. This counter hit an intra-day high of 36 sen, but finished flat at 35 sen yesterday.
MAS has the potential to come out of the rut, if it could attract greater participation from investors. The immediate upside objective would be to challenge the 40-sen barrier. A push above the upper 47.5-sen resistance line would see the fate of this stock changing for the better, enroute to the 60-sen mark.
Elsewhere, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index were firming after triggering a short-term buy at the neutral territory on Thursday. Similarly, the 14-day relative strength index retraced back to the mid-range on Thursday before curving up to end at the 64-point level yesterday. In addition, the daily moving average convergence/divergence histogram appeared resuming the upward expansion against the daily trigger line to stay bullish. It had issued a buy signal on Sept 26.
Technically, indicators are on the mend, implying MAS shares are likely to strengthen in the short term, but on a slow pace, unless trading volumes pick up rapidly and positively. Current support is pegged at the 32-sen floor, of which a crack may drag prices back to the base or lower. - K.M. Lee, thestar.com.my
The comments above do not represent a recommendation to buy or sell.
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