Saturday, 26 March 2016 Eye on stock; Sunsuria

by **Cals** Mon 28 Mar 2016, 01:01

Saturday, 26 March 2016

Eye on stock; Sunsuria

BY K.M.LEE
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SHARES of Sunsuria Bhd (Sansuria, 3743 and formerly known as Malaysia Aica Bhd) fell to a seven-month low of 75.5 sen on Aug 26 last year on correction.
Amid a fresh bout of bargain hunting interest, prices staged a rebound to a high of 94.5 sen in a two-month rally making an attempt to heal, but the absence of follow-through support from investors prompted the bulls to abandon the idea. Subsequently, prices retraced back to the 81-sen level on Feb 3 and turned sideways, lasting several weeks on consolidation before bouncing off again amid fresh buying momentum.
Sansuria shares rose to a high of 91 sen in early session before giving up gains to close down 2.5 sen to 86 sen as a frail broader market tone simply was not supportive.
Nevertheless, it looks like the bulls are making a fresh effort to recover and the growing trading volumes was a good indication. Based on the daily chart, a decisive penetration of the 95-sen stiff barrier would give investors the confirmation that this stock is indeed on the mending course. So, check out on that.

If successful, the next upside objective would be to challenge the upper resistance of RM1-RM1.02 band, or the RM1.15 level.Greater resistance is expected at the RM1.30 mark. Elsewhere, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index had triggered a short-term sell near the overbought area yesterday.
The past week saw the the 14-day relative strength index firmed to a reading of 77 on Thursday before curving down slightly to finish at the 61-point level. In stark contrast, the daily moving average convergence/divergence histogram expanded sharply against the daily signal line to keep the bullish note. It had issued a buy call on Thursday.
Indicators are mixed, suggesting Sunsuria shares may trade range-bound to marginally higher, with a fairly good chance of triggering a positive breakout once the underlying tone of the principal market turns positive. As for the downside, crucial support is pegged at the most recent lows of 81 sen. — K.M. Lee
The comments above do not represent a recommendation to buy or sell.