SHARES of Yee Lee Corp Bhd have been rising gradually on renewed bargain hunting interest since Aug 28 last year, with momentum appearing to pick up steam only over the past several days.
The upward trend arose from a steep correction, which saw prices firming from the critical level of RM1.02, also the 200-day simple moving average line to achieve a high of RM1.45 during intra-day session before reversing slightly to close down three sen to RM1.40.
Based on the daily chart, Yee Lee has more or less fully recovered from the last correction. With prices flirting within striking distance of the previous rally peak, it looks like a positive breakout of the RM1.46 barrier is on the card.
If successful, it would signal the resumption of an uptrend, enroute to the RM1.70 mark and probably to the RM1.80-RM1.81 band later. The next upper heavy hurdle is expected at the RM2-psychological level.
Elsewhere, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index were advancing. It had issued a short-term buy at the neutral area in mid-week. Likewise, the 14-day relative strength index improved significantly from a reading of 45 on Monday to settle at the 87-point level yesterday.
The daily moving average convergence/divergence histogram expanded sharply and positively against the daily signal line to stay bullish. It had also triggered a buy on Wednesday. Technically, indicators are painting a pretty encouraging landscape, implying a bullish breakthrough appears imminent.
The immediate support is envisaged at RM1.38, followed closely by the RM1.32 line. Important floor is pegged at the RM1.26 level, of which a crack will have a negative impact on this counter going forward. — By K.M. LEE, thestar.com.my
The comments above do not represent a recommendation to buy or sell.
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