Eye on stock: MENANG

by **Cals** Sun 24 May 2015, 17:21

Eye on stock: MENANG

Saturday, 23 May 2015

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AFTER pulling back from a rally peak of RM1.33 on July 3, 2014, the best level in 17 years, to a low of 61.5 sen on Dec 24, last year amid extended profit-taking, Menang Corp Bhd staged a nice rebound in an attempt to heal.
However, the momentum could not be sustained but punctured at the 93-sen barrier on March 3 in the absence of follow-through interest.
Subsequently, prices retraced slightly and slipped into sideways congestion, which saw the upper 200-day simple moving average (SMA) acting as an initial resistance and the lower 100-day SMA providing support.
The process lasted slightly more than two months before prices finally staged a bullish breakout of the 200-day SMA line on Thursday, bucking the frail principal market trend.
Based on the daily chart, Menang may be building up the pace to establish a new leg of uptrend. A decisive penetration of the 95-sen stiff resistance would give investors the confirmation. So, look out for that.
If successful, a re-test of the previous rally high of RM1.33 can be expected. The next resistance is envisaged at the RM1.50 mark.
Elsewhere, the daily slow-stochastic momentum index retained the buy call, but it had indicated a mild topping out pictogram at the overbought area.
In stark contract, the 14-day relative strength index firmed from a reading of 36 on Monday to finish the week at the 77-point level yesterday.
Also, the daily moving average convergence/divergence histogram expanded sharply and positively against the daily trigger line. A buy signal was issued in mid-week.
Technically, most of the indicators are positive, suggesting Menang shares are likely to strengthen in the short term. Crucial support is pegged at the 79-sen floor. — By K.M. Lee

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