Eye On Stock: Kim Teck Cheong Bhd

by **Cals** Mon 30 May 2016, 02:48

Saturday, 28 May 2016

Eye On Stock: Kim Teck Cheong Bhd

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KIM Teck Cheong Bhd (KTC, Code: 0180) drifted marginally to a low of 26 sen four-days after its maiden listing on the Ace Market on Nov 25 last year, which eventually became the historical ebb.
The shares made their debut at 30 sen against their initial public offer of 15 sen.

After making its presence on Bursa Malaysia, prices were simply fluctuating within a narrow range.
The dull trading lasted one month and, finally, the bulls were set free to rally on Dec 28 last year to a peak of 47.5 sen on Jan 6.
Thereafter, prices slipped into correction process but it turned ugly later.
Though the downward spiral of KTC paused at the 33.5-sen level in mid-March, it was met with more liquidation later and subsequently, prices came under renewed pressure to retreat further.
KTC shares touched a low of 26.5 sen on Wednesday, followed by a mild rebound.
Apparently, the prevailing trend still is bearish but investors can consider accumulating for the next upward wave, which may come soon, as trading volumes was very thin in the past couple of months, implying that those who had wanted to sell would have done so by now and theoretically, a fresh bout of buying is likely to emerge next.
Elsewhere, the oscillator per cent K had climbed above the oscillator per cent D of the daily slow-stochastic momentum index to trigger a short-term buy yesterday.
Meanwhile, the 14-day relative strength index had improved significantly over the past several days, up from a very oversold single-digit reading of six to settle at the 25-point level yesterday.
In stark contrast, the daily moving average convergence/divergence histogram kept the sell call, trending sharply below the daily trigger line.
Technically, KTC shares are poised to inch higher due to very oversold reason.
A clear penetration of the existing descending trend line of 35 sen, followed by a decisive breakout of the 50-day simple moving average of 36 sen would signal a bullish turnaround.
As for the downside, the all-time lows of 26 sen will now act as a tentative base and the trailing exit. – By K.M. Lee
The comments above do not represent a recommendation to buy or sell.