SupportLine: BSL Corp Bhd

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BSL Corp Bhd shares dropped to an all-time low of 17.5 sen during intra-day session on Aug 20, 2015 following a prolonged downward pressure amid bearish extended mode.

Soon after finding support, prices see-sawed in directionless pending a clearer picture to emerge while undergoing consolidation.

The waiting period for a fresh lead lasted 15 months before the bulls finally found renewed strength and embarked on a recovery phase in late November last year.

Since then, this stock never looked back although the recovery appeared volatile.

This counter hit a high of 79 sen during intra-day trading on Monday amid continuous bargain hunting interest, the best level since April 2007, bucking the generally sluggish main  market trend.

Based on the daily chart, BSL Corp shares were well supported by the long-term 200-day simple moving average (SMA), now resting at 51 sen and still rising.

Theoretically, there is a great potential of the bulls scaling new highs. as long as this line is intact.

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 signal at the mid-range on Monday.

Mirroring the upward trend, the 14-day relative strength index rose to the 79 points level on Monday from a reading of 59 points on Nov 16.

In addition, the daily moving average convergence/divergence histogram sustained the uptrend in tandem with the daily signal line to keep the bullish note. A buy call was issued on Nov 8.

Technically, indicators are painting a pretty encouraging landscape, suggesting more upside may be in the pipeline and should there be a pullback due to overbought reason, investors can consider accumulating more on weakness.

Initial target is to challenge the immediate resistance of 84 to 85 sen band.

The next upper hurdle is expected at 95 sen, followed by the RM1.03 barrier and the next, at the RM1.15 level.

As for the downside, current support is seen at 72 sen.

The next lower floor is pegged at the 14-day SMA of 67.5 sen and the 50-day SMA of 60.5 sen.