Eye on stock; Comintel Corp By: K.M. LEE

by **Cals** Sat 11 Jul 2015, 21:48

Eye on stock; Comintel Corp

Saturday, 11 July 2015
By: K.M. LEE

COMINTEL Corp Bhd (Comcorp) shares retraced from a near three-year high of 36 sen on May 19, last year to the base of the previous rally amid persistent profit-taking activity.
Thereafter, this stock rebounded slightly on consolidation, lasting several months before spiking in the wake of renewed bargain hunting, which saw prices re-visiting the 36-sen barrier on June 26.
In the absence of strong buying momentum to push the shares through this heavy barrier, thus resulting a mid-term “double-top” formation, they succumbed to pressure to pull back marginally to trade range-bound, but with a mild upward bias, undergoing another round of consolidation.
Comcorp flirted to a high of 36.5 sen during intra-day session, but finished at 35.5 sen, up 1.5 sen yesterday.
Based on the daily chart, the bulls had finally cracked the tough nut of 36 sen briefly on the second attempts yesterday.

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Traders can consider taking up a position, if one is optimistic of the trend ahead. In the short term, prices are poised to challenge the 44 sen-45 sen heavy resistance band, of which a major breakthrough would see the bulls turning more aggressive. The next upper resistance is resting at the 60-sen mark.
Elsewhere, the oscilltor 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 60% level on Thursday. Also, the daily moving average convergence/divergence histogram continued to expand upward against the daily trigger line to stay bullish. A buy call was issued on June 23.
Meanwhile, the 14-day relative strength index retained the posture above the 70-point bullish line. Apparently, indicators are painting a pretty promising pictogram, suggesting advances in the pipeline. For the downside, initial support is envisaged at the 32-sen level, followed closely by the 29.5-sen floor, which is the 14-day simple moving average.
The next lower floor is lying at the 22 sen-22.5 sen range.
The comments above do not represent a recommendation to buy or sell.