The surge in share price saw the counter break free of the negative pressure it was under and open up new grazing grounds for the bulls to roam.
Over the next four trading sessions, the counter would undergo a period of sideways consolidation as investors awaited new leads. However, there looks to be more upsides for the share price over the immediate term with new support levels building up to the lower end of the chart.
The recent developments on the daily price chart has also led to a bullish flag formation, suggesting more positive price action in the days ahead.
Going to the technicals, the per cent K of the slow-stochastic momentum index is at a healthy level of 60 points and has crossed the percent D to give a buy signal. It is still at a good distance from the overbought line, indicating also that there is room to grow.
The 14-day relative strength index has touched the overbought line at 70 points, but more importantly, is growing to indicate rising momentum.
The daily moving average convergence/divergence line is also looking bullish, rising at a good clip away from the neutral and signal lines.
Following Monday’s price movement, the counter has remained above the simple moving averages, which have formed supporting levels in the RM1.14 to RM.16 range.
Falling through this support level, the stock will return to its pre-election trading levels with further support seen at RM1.11.
However, if the bulls follow through, the stock may once against challenge the RM1.24 mark, although the nearby RM1.26 level will pose as a further hurdle. Crossing this, the stock will be free to rise to a recent peak of RM1.31 achieved on Feb 21.
The comments above do not represent a recommendation to buy or sell. – THESTARONLINE