Eye on stock: Berjaya Sports Toto

by **Cals** Sat 20 Jun 2015, 23:27

Eye on stock: Berjaya Sports Toto

Saturday, 20 June 2015

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A COUPLE of failed attempts to penetrate the previous major rally peak of RM4.95, set on June 21, 2007, sent Berjaya Sports Toto Bhd shares into a prolonged range-bound consolidation and subsequently an extended downward correction process, which saw prices swooned to a low of RM3.19 on May 29.
After violating the 61.8% Fibonacci retracement (FR) of RM3.20, this stock appeared frail and many people had expected it to tank deeper into the red. But a fresh bout of buying emerged unexpected to the rescue, thus lifting prices marginally higher off the ebb.
Berjaya Sports Toto was last traded at RM3.25, down one sen yesterday.
Based on the daily chart, it appears that this counter has corrected enough and now in the midst of constructing a base to heal.
Perhaps, investors can consider accumulating some, with prices flirting slightly above the 61.8% FR line and technically, viewed as an attractive entry level, 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 triggered a short-term buy signal at the grossly oversold area a week ago.
Also on the rise, the 14-day relative strength index improved moderately from a reading of 41 on June 10 to settle at the 62 points level yesterday.
In addition. the daily moving average convergence/divergence histogram sustained the upward expansion against the daily signal line to keep the the buy call issued in mid-week.
Apparently, indicators are improving, implying Berjaya Sports Toto shares are likely to firm gradually in the immediate term.
Stiff resistance can be expected at the 200-day simple moving average of RM3.45, followed by the RM3.53 heavy barrier, of which a clear penetration would signal a bullish turnaround.
As for the downside, the recent lows of RM3.19 will now act as the tentative base for mending course, also acting as the trailing exit. - By K.M. Lee
The comments above do not represent a recommendation to buy or sell.