Eye on Stock BY K.M. LEE - UNISEM

by **Cals** Sun 17 Nov 2013, 21:14

Published: Saturday November 16, 2013 MYT 12:00:00 AM
Updated: Saturday November 16, 2013 MYT 9:22:58 AM
Eye on Stock

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UNISEM (M) Bhd has been on the downtrend after peaking at the previous major rally high of RM2.72 on May 3, 2010.
Although this semiconductor stock did try to recover on numerous occasions, every attempt in the past was met with more liquidation pressure.
Prices plunged to a low of 83.5 sen mid-week, the worst level since May 25, 2009.
However, just when the shares looked frail and defenceless, some investors emerged from the sidelines to the rescue, thus helping them rebound. Unisem recovered strongly to a high of 98 sen during intra-day session in the wake of fresh bargain hunting interest yesterday. Based on the daily bar chart, it looks like this stock has come out of the rut, with prices penetrating the 3½-year-old bearish descending line of 92 sen. Another good day, accompanied by bigger daily turnover would give all of us the confirmation that the bulls have taken over the driver seat.
The immediate upside target would be to fill a minor gap at the 99 sen-RM1.01 band and to challenge the upper resistance of RM1.10. The next greater resistance is resting at the RM1.20 mark. Elsewhere, the daily slow-stochastic momentum index was rising after triggering a short-term buy at the oversold area on Thursday. Mirroring the uptrend, the 14-day relative strength index improved sharply from a reading of 19 in mid-week to settle at the 70 points level yesterday.
Meanwhile, the daily moving average convergence/divergence histogram had crossed over the daily signal line to trigger a short-term buy. Overall, indicators are painting a promising landscape, implying Unisem shares are poised to firm in the immediate term.
As for the downside, the recent low of 83.5 sen will now act as the base for recovery. – By K.M. Lee

The comments above do not represent a recommendation to buy or sell.