HO Hup Construction Co Bhd (Ho Hup, 5169) shares dropped to a 3½-year low of 71 sen in late November last year after a long downtrend on bearish extended-move.
Thereafter, this stock see-sawed, but with an upward bias attempting to mend.
Initial stage of recovery was wobbly amid light bargain hunting interest alternated with sporadic selling, but interest appeared more consistent, with buying momentum picking up steam lately, propelling prices to a high of 92 sen during intra-day session yesterday, the best level in 13 months.
Based on the daily chart, Ho Hup shares had rebounded back to within striking distance of the three-year-old bearish descending trend line of 94 sen apparently and with trading volumes growing, suggesting more investors are returning to this construction counter, it looks like the young bulls may have a great chance of taking the corner safely soon.
If successful, the immediate upside objective will be to challenge the relatively stiff resistance of RM1.14-RM1.15 band.
The next upper strong resistance is expected at the RM1.54-RM1.55 area.
Elsewhere, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index were on the rise after triggering a short-term buy at the neutral territory on Thursday.
Also on the upward thrust, the 14-day relative strength index improved significantly to the 80 points level yesterday, up from a reading of 43 the previous week.
Meanwhile, the daily moving average convergence/divergence histogram climbed above the daily signal line to issue a buy call yesterday.
Technically, indicators are painting a pretty promising landscape, implying a breakthrough may be on the cards.
Perhaps, optimistic investors can take up a positive at current levels.
As for the downside, current support is lying at the 82 sen floor and trailing stop-loss exit is pegged at the 80 sen mark. – By K.M. Lee
- The comments above do not represent a recommendation to buy or sell.