Eye on stock Saturday, 21 March 2015 BY: K.M.LEE

by **Cals** Mon 23 Mar 2015, 00:22

Eye on stock

Saturday, 21 March 2015
BY: K.M.LEE

A & M Realty Bhd scaled to a 17-year high of RM1.49 on April 23 last year and re-tested this rally peak again nearly three months later.
The futile attempt to tear down this relatively stiff barrier formed a “double-top” pattern, prompting investors to book gains.
In the wake of apparent profit-taking activity, this counter succumbed to pressure to retreat, pulling prices to an 18-month low of 80 sen in late-December on extended correction process.
They then re-visited this floor four days later before bouncing off amid renewed bargain-hunting interest. sending the shares to a high of RM1.16 during intra-day session yesterday.
Based on the daily chart, A & M Realty had breached the uppermost 200-day simple moving average (SMA) of RM1.14 during intra-day session, bucking the frail primary market trend.
Theoretically, the breakthrough would clear the way for more scaling going forward.
To the upside, the immediate target would be to fill the RM1.26-RM1.27 minor gap and later to challenge the previous rally peak of RM1.49.
Turning to the indicators, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index were inching up after triggering a short-term buy at the 57% level.
Similarly, the 14-day relative strength index was ticking up from a reading of 62 in mid-week to settle at 77 points yesterday.
Meanwhile, the daily moving average convergence/divergence histogram continued to expand positively against the daily signal line to keep the bullish note. It had issued a buy on Jan 9.
As for the downside, initial support is pegged at the 14-day SMA of RM1.03 and as long as the rising 21-day SMA of 98.5 continues to support prices, the prevailing trend is constructive.
The comments above do not represent a recommendation to buy or sell.