Eye on Stock Saturday, 6 December 2014 By: K.M. LEE

by **Cals** Mon 08 Dec 2014, 02:36

Eye on Stock

Saturday, 6 December 2014
By: K.M. LEE

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MINTYE Industries Bhd peaked out temporarily at a 10-year high of RM1.68 on July 20, 2012.
In the wake of an apparent profit-taking activity, prices succumbed to pressure to retreat in a typical consolidation process. As persistent liquidation continued to hurt sentiment, they then gradually slipped into correction mode.
Mintye shares fell to a low of RM1.07 on Thursday before a fresh bout of renewed bargain hunting activity came to the rescue, helped lifting them to a high of RM1.19 during intra-day session yesterday.
Based on the daily chart, Mintye has fallen quite substantially after a prolonged correction phase and and there is a high possibility prices may stabilise soon, with prices approaching the 61.8% default setting of the Fibonacci retracement of the previous rally, resting at the RM1.05 level, which is viewed as an enticing level for investors to accumulate, if one is still optimistic about the prospects of this stock.
Elsewhere, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index were on the rise. It had issued a short-term buy at the oversold area in mid-week.
Likewise, the 14-day relative strength index finished at a reading of 51 yesterday, up from the 36-point level a week ago. The daily moving average convergence/divergence histogram continued to expand upward against the daily signal line to stay bullish. It had triggered a buy late last month.
Technically, indicators are on the mend, suggesting Mintye is like to firm in the short term, with the immediate resistance anticipating at the 200-day simple moving average of RM1.32.
The next upper strong barrier is pegged at the 14-year-old descending line of RM1.55, of which a decisive penetration would signal the bullish reversal. As for the downside, trailing exit is set at the RM1.03 line.
The comments above do not represent a recommendation to buy or sell.