Eye on stock - HIAPTEK

AFTER a period of correction process, Hiap Teck Venture Bhd
staged a steep rebound in the wake of renewed bargain hunting interest,
which witnessed the shares hitting to a near six-month high of RM1.18
during intra-day session before reversing to finish down nine sen to
RM1.05 yesterday. The recent recovery was backed by encouraging
trading volumes and it came after prices had re-tested the 20-month lows
of 91 sen on July 14 to form a “double-bottom” pattern. This
stock had penetrated the 14-day simple moving average (SMA), 21-day SMA,
100-day SMA, as well as the 200-day SMA on our radar screen, but we
could not confirm that the prevailing trend has shifted to bullish just
yet as the mid-term descending line remains intact. The outcome may be
known soon and investors should take note that a decisive penetration of
the mid-term descending line of RM1.18, also yesterday's intra-day
peak, will signal a positive turnaround. The oscillator per cent K
and the oscillator per cent D of the daily slow-stochastic momentum
index were fast reaching the overbought area after issuing a buy signal
on July 14. Elsewhere, the daily moving average convergence/divergence
histogram continued to expand positively against the daily trigger line
to retain the bullish note. The 14-day relative strength index retained
the bullish posture, fluctuating around the 80-86 points band. Analysis
suggests that if the recent buying momentum is genuine and sustainable,
a positive breakout will come about soon, which may see prices scaling
higher on bullish-extended mode. To the upside, stiff resistance
is expected at the RM1.57 mark, which is the previous major rally peak.
Stop-loss exit is pegged at the 90 sen line