Based on the daily chart, Minho appears to be making a fresh attempt to resume the recovery process after the recent corrections and consolidations. The piling up in the daily turnover was a good sign and investors can consider taking up a position at current levels, if one is optimistic of the trend ahead.
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 issued a short-term buy at the neutral area in mid-week. Mirroring the upward thrust, the 14-day relative strength index improved significantly to a reading of 76 yesterday from the 45 points level a week ago.
Meanwhile, the daily moving average convergence/divergence histogram expanded sharply and positively against the daily signal line to stay bullish. It had called for a buy on Thursday.
Technically, indicators are painting a pretty promising pictogram, implying Minho shares are highly likely to firm in the short term amid follow-through interest.
The immediate upside target would be to challenge the RM1-mark psychological level, which is a relatively strong barrier. The next upper stiff resistance is expected at the RM1.16 line, of which a clear penetration would see the bulls becoming more aggressive. If successful, the next objective would be to test the RM2 level in the near term.
Initial support is envisaged at the 79 sen-80 sen range while concrete floor is resting at the 70-sen mark, also the important 200-day simple moving average line. - by k.m. lee, thestar.com.my
The comments above do not represent a recommendation to buy or sell.
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