Thereafter, prices turned sideways briefly on light bargain hunting interest offsetting selling before bouncing off in the wake of fresh buying interest.
Alcom recovered to a seven-month high of 81.5 sen during intra-day session yesterday.
What is more significant is that the bulls had penetrated the almost a decade-old bearish descending line. The major breakthrough suggests that this stock has turned the corner, meaning that the worst is over in this case.
Combined with the growing trading volumes, Alcom shares are poised to strengthen on follow-through buying momentum. Perhaps, investors can consider taking up a position while prices are still flirting at an appealing level.
Elsewhere, the oscillator per cent K reversed up from the mid-range and climbed over the oscillator per cent D of the daily slow-stochastic momentum index to trigger a short-term buy yesterday. Also on the rise, the 14-day relative strength index climbed from a reading of 44 in mid-week to close at the 80-point level yesterday.
Meanwhile, the daily moving average convergence/divergence histogram expanded sharply and positively against the daily trigger line to stay bullish. It had issued a buy call on March 26.
Technically, indicators are looking good, implying yesterday’s bullish breakout was real and that Alcom shares can only get better in the near term. Initial upside target is set at the 90 sen mark, followed by the RM1-RM1.05 range. The next upper heavy resistance is expected at the RM1.15-RM1.16 band.
To the downside, the most recent low of 62 sen will now act as a concrete base for recovery. - by k. m. lee, thestar.com.my
The comments above do not represent a recommendation to buy or sell.
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