Taliworks Corp Bhd
is moving into a consolidation phase since a pull back from a recent high of 90 sen on Nov 19.
In Tuesday's development, the share price showed some upwards movement and some life return to its momentum indicators, suggesting that the retreat may have been just a temporary correction.
Looking at the daily price chart, there are indications that the stock may move within the 82 sen and 90 sen price range, suggesting that the share price is consolidating over the immediate term.
However, there remains an upside bias given that the bull trend remains intact and there is still positive momentum in the indicators.
The slow-stochastic momentum index remains healthy at 50 points, and is looking towards issuing a "buy" signal as the percent K oscillator approaches a positive crossing with the percent D oscillator.
The 14-day relative strength index is once more on a positive trajectory at 65 points.
The daily moving average convergence/divergence line remains on an uptrend, outpacing the signal line and rising.
Trading volume, which spiked over the course of the past weak, remains elevated suggesting that there is still investor interest in the stock.
The 90 sen mark serves as the target resistance for the stock. A breach of this hurdle would signal the resumption of an uptrend with the share price pushing towards its next target of 93 sen.
Meanwhile, the 82 sen mark, which meets the short-term 14-day simple moving average (SMA) serves as an immediate support for the counter although stronger selling pressure would see it return to the 100-day SMA at 78 sen.
The comments above do not represent a recommendation to buy or sell.
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