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NewsEye on stock: DRB-Hicom BY K.M. LEE
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Eye on stock: DRB-Hicom BY K.M. LEE
by Cals Mon 04 Apr 2016, 02:26
Saturday, 2 April 2016
BY K.M. LEE
Click on image to view actual size.
DRB-HICOM Bhd (Code 1619) dropped to a low of 94 sen during intra-day session on March 9, the worst level since June 23, 2009 amid persistent liquidation pressure.
Thereafter, in the wake of renewed bargain hunting interest, prices staged a rebound to a high of RM1.18 level on March 21, but the eight-day rally could not attract follow-through buying interest and hence, the positive momentum fizzled out.
Subsequently, DRB-Hicom retraced moderately back to the RM1.02 level last week and turned sideways, undergoing consolidation above the lowest 21-day simple moving average (SMA) line. Based on the daily chart, it looks like this stock has finally found the bottom after a prolonged sufferings, lasting more than three years and it is now in the midst of constructing a base for recovery, or attempting to mend. Perhaps, investors can consider accumulating some at current levels while prices were flirting at an attractive area, if one is optimistic of the trend ahead. Otherwise, wait for a major breakout.
Initial resistance is pegged at the most recent high of RM1.18. A decisive breach of the heavy barrier of RM1.27, which is also the uppermost 200-day SMA line, followed by a successful penetration of the RM1.30 mark would signal a major breakthrough, clearing the way for more advances going forward. If that happens, the immediate target to look for would be the RM1.45-RM1.50 band.
Elsewhere, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index were ticking up from the neutral area. It had triggered a short-term buy yesterday. Also, the daily moving average convergence/divergence histogram resumed the upward expansion against the daily signal line to keep the positive note. A buy call was issued on March 14.
But surprisingly, the 14-day relative strength index were generally trapped within the 46 points-53 points range. Technically, most indicators are painting an encouraging landscape, implying DRB-Hicom shares are envisaged to firm in the immediate term, with the potential of turning around after a long bearish phase. As for the downside, the 94-sen line will now act as a tentative base for healing. — K.M. Lee
The comments above do not represent a
recommendation to buy or sell.
Eye on stock: DRB-Hicom
BY K.M. LEE
Click on image to view actual size.
DRB-HICOM Bhd (Code 1619) dropped to a low of 94 sen during intra-day session on March 9, the worst level since June 23, 2009 amid persistent liquidation pressure.
Thereafter, in the wake of renewed bargain hunting interest, prices staged a rebound to a high of RM1.18 level on March 21, but the eight-day rally could not attract follow-through buying interest and hence, the positive momentum fizzled out.
Subsequently, DRB-Hicom retraced moderately back to the RM1.02 level last week and turned sideways, undergoing consolidation above the lowest 21-day simple moving average (SMA) line. Based on the daily chart, it looks like this stock has finally found the bottom after a prolonged sufferings, lasting more than three years and it is now in the midst of constructing a base for recovery, or attempting to mend. Perhaps, investors can consider accumulating some at current levels while prices were flirting at an attractive area, if one is optimistic of the trend ahead. Otherwise, wait for a major breakout.
Initial resistance is pegged at the most recent high of RM1.18. A decisive breach of the heavy barrier of RM1.27, which is also the uppermost 200-day SMA line, followed by a successful penetration of the RM1.30 mark would signal a major breakthrough, clearing the way for more advances going forward. If that happens, the immediate target to look for would be the RM1.45-RM1.50 band.
Elsewhere, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index were ticking up from the neutral area. It had triggered a short-term buy yesterday. Also, the daily moving average convergence/divergence histogram resumed the upward expansion against the daily signal line to keep the positive note. A buy call was issued on March 14.
But surprisingly, the 14-day relative strength index were generally trapped within the 46 points-53 points range. Technically, most indicators are painting an encouraging landscape, implying DRB-Hicom shares are envisaged to firm in the immediate term, with the potential of turning around after a long bearish phase. As for the downside, the 94-sen line will now act as a tentative base for healing. — K.M. Lee
The comments above do not represent a
recommendation to buy or sell.
Cals- Administrator
- Posts : 25277 Credits : 57721 Reputation : 1766
Join date : 2011-09-08
Location : global
Comments : “My plan of trading was sound enough and won oftener that it lost. If I had stuck to it Iâ€
d have been right perhaps as often as seven out of ten times.â€
Stock Exposure : Technical Analysis / Fundamental Analysis / Mental Analysis
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