EUPE Corp Bhd surged to a high of 94.5 sen during intra-day session, the best since October 2007 amid persistent bargain hunting interest.
The scaling came following a period of correction recently, lasting more than two months.
Based on the daily bar chart, the bulls had breached the previous minor rally peak of 93.5 sen and with buying momentum remaining firm, investors can expect prices to sustain the upward thrust going forward.
The near-term target is set at the RM1.10 hurdle following the tentative bullish breakout yesterday. If this level is taken out decisively, it would open the windows for the bulls to challenge the upper heavy resistance of RM1.54, which is also the previous major rally peak set on July 26, 2007.
Apparently, 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 mid-range on Thursday. The past week witnessed the 14-day relative strength index pulling back to a reading of 60 on Tuesday before curving up to settle at the 82-point level yesterday.
Meanwhile, the daily moving average convergence/divergence histogram expanded sharply against the daily signal line to keep the bullish note. A buy call was issued on March 5.
Technically, all the short-term indicators are painting an encouraging landscape, implying Eupe shares are likely to climb on follow-through nibbling in the immediate term.
As for the downside, initial support is pegged at the 21-day simple moving average (SMA) of 84 sen.
A lower support floor is seen resting at the 100-day SMA of 78 sen, of which a crack will have a negative impact on the outlook 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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