Eye on stocks; RCE Capital Saturday, 6 June 2015 By: K.M.LEE

by **Cals** Mon 08 Jun 2015, 03:34

Eye on stocks; RCE Capital

Saturday, 6 June 2015
By: K.M.LEE

RCE Capital Bhd has been rising the past several months on renewed bargain hunting buying momentum following a round of correction process, which witnessed prices bouncing from the most recent lows of 28.5 sen in mid-December last year to achieve a nine-month high of 36 sen on Thursday.
Yesterday, the shares re-tested the previous day’s peak of 36 sen in early session before reversing slightly to close a shade lower, down half a sen to 35 sen.
Based on the daily chart, RCE Cap remains in correction mode apparently, but recent price development suggests that it is making a fresh attempt to mend and chances are fairly good it may succeed this time round, with investors’ interest building up.
A breach of the mid-term descending line of 37 sen, followed by a clear breakout of the relatively stiff barrier of 39 sen would give all of us the confirmation that this stock is on the way up, enroute to the 45.5-sen level or the upper 50-sen mark in the near term.

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Elsewhere, the oscillator per cent K had slipped below the oscillator per cent D of the daily slow-stochastic momentum index yesterday, but the short-term sell signal could not be confirmed for now, simply because the two lines continued to flirt at the bullish territory.
In stark contrast, the 14-day relative strength index rose from a reading of 42 on May 26 to settle at the 77-point level yesterday.
Meanwhile, the daily moving average convergence/divergence histogram sustained the upward expansion against the daily signal line to keep the bullish note. It had issued a buy call on Tuesday.
Technically, most of the indicators are positive, implying RCE Cap shares are poised to strengthen, once the broad-market sentiment turns favourable.
Initial support is pegged at the 50-day simple moving average of 33 sen. An additional floor is resting at the 30-sen psychological level.
The comments above do not represent a recommendation to buy or sell.