Eye on stock - BREM Holdings Bhd

by **Cals** Sat 30 Nov 2013, 17:06

Published: Saturday November 30, 2013 MYT 12:00:00 AM
Updated: Saturday November 30, 2013 MYT 12:00:15 PM
BY K.M. LEE
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BREM Holdings Bhd shares pulled back to a two-year low of RM1.03 on May 3 amid extended correction before bargain hunters emerged from the sidelines to the rescue, helping them to rebound to a 15-month high of RM1.29 on May 22. Thereafter, prices were generally trapped within a moderate range, undergoing consolidation.
Based on the daily chart, Brem had tested the recent peak of RM1.29 on two occasions over the past seven trading sessions and the latest attempt was seen yesterday.
Very clearly, the bulls are making a strong attempt to resume the recovery process and it looks like they have a great chance of making a breakthrough over the next few trading days as investors may be aggressively taking up positions at current levels, given the fact that turnover is piling up.
A breach of the RM1.30 barrier on bigger volumes would give confirmation, en route to challenge the RM1.60-RM1.72 resistance band. The next upper hurdle is resting at the RM2-RM2.06 range.
Elsewhere, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index were firming. It had issued a short-term buy at the bottom on Thursday.
Also on the rise, the 14-day relative strength index improved significantly from a reading of 48 on Monday to end the week at the 79 points level.
Meanwhile, the daily moving average convergence/divergence histogram climbed above the daily signal line to trigger a buy yesterday. Analysis on the technical indicators suggest that a bullish breakout appears imminent.
As for the downside, important support is pegged at the RM1.20 mark.

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