Eye On Stock Saturday, 8 November 2014 By: K.M. LEE

by **Cals** Sun 09 Nov 2014, 23:46

Eye On Stock

Saturday, 8 November 2014
By: K.M. LEE

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RIMBUNAN Sawit Bhd (Rsawit) shares fell from an all-time peak of RM1.22 on Feb 20, 2012 to a near three-year low of 61 sen on Oct 23 amid extended correction process.
Thereafter, renewed bargain hunting activity emerged from the sidelines, thus helping this counter to a moderate rebound, which saw prices hitting a high of 71 sen during intra-day session, up two sen yesterday. Based on the daily chart, this stock remained in correction mode, but the price actions over the past two weeks offer investors a ray of hope of a bullish turnaround.
Elsewhere, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index had indicated a mild topping out at the overbought area, but it could not be confirmed for now, simply because the two lines were still keeping the posture at the bullish territory.
Meanwhile, the 14-day relative strength index continued to climb, up from a single-digit reading of five on Oct 16 to settle at the 73-point level yesterday. In addition, the daily moving average convergence/divergence histogram sustained the upward expansion against the daily trigger line to stay bullish. It had issued a buy signal late last month.
Technically, indicators are improving rapidly, implying Rsawit shares are likely to firm in the short term.
Initial resistance is seen at 100-day simple moving average (SMA) of 72 sen, followed by the 200-day SMA of 76.5 sen. The next upper resistance is pegged at the bearish descending line of 78 sen, of which a clear penetration would signal a positive reversal. So, check out on that.
Current support is seen at the 65-sen level. A decisive breakdown from the 60-sen mark would signal the resumption of a downtrend and in this case, the lower floor of 46.5 sen will be vulnerable.
The comments above do not represent a recommendation to buy or sell.