PRICEWORTH International Bhd shares staged a strong rebound, hitting as high as 40.5 sen soon after setting an all-time low of 20 sen on May 3, 2013.
However, the momentum could not be sustained, as a futile attempt to make a major breakthrough then, prompted investors to quickly book profits. Prices retreated back to the base and they were largely traded within a moderate range on bargain hunting interest alternated with light-selling activity.
Based on the daily chart, it looks like Priceworth has found the bottom after a long bearish phase. Adding to our optimism was the band trading in the past several months, indicating this stock could be in the midst of building a concrete platform for recovery.
Initial resistance is seen at the 30-sen mark. A breach of the bearish descending line of 37 sen would signal a positive turnaround and a successful penetration of the 40.5-sen barrier would give investors the confirmation that this stock is indeed on the mending course.
Elsewhere, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index were on the rise. It had triggered a short-term buy at the neutral area on Tuesday. Mirroring the trend, the 14-day relative strength index improved moderately from the mid-range to settle at the 78-point level yesterday. The daily moving average convergence/divergence histogram and the daily signal line were back in the positive territory. It had issued a buy earlier this month.
Technically, indicators are seen improving gradually, implying Priceworth shares may strengthen, with a view of making a major breakthrough in the near term. Current support is resting at the 24-sen line and the lower 20-sen mark would now act as a tentative base for recovery.
The comments above do not represent a recommendation to buy or sell.
by K M LEE, thestar.com.my
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