By K.M. LEETHIS penny stock continued with its uptrend after a brief correction, rising from the 32-sen level on Jan 27 to hit a six-month high of 46 sen during intra-day trade Wednesday. The stochastics momentum index issued a buy signal on Tuesday, and the positive expansion on the moving average convergence/divergence against the signal-line suggests that prices may move higher to challenge the 51.5 sen resistance in the near-term. Support is seen at 41 sen. A STRONG rebound over the past two days lifted this stock from the 71.5-sen level to an intra-day high of 88 sen. However, the momentum could not be sustained owing to heavy profit-taking. Prices may retrace further as the 14-day relative strength has hooked down. This stock continues to attract speculative play and bargain hunting may emerge if prices weaken further. Support is seen at 78.5 sen and resistance at 96.5 sen. HAVING corrected its overbought condition the previous week, the 27% gains in the share prices over the past three days prompted investors to take profit again. Nevertheless, the underlying sentiment remain firm and prices are poised to assault its recent high of 95 sen, with the stochastics momentum index having issued a buy signal on Tuesday. The next resistance is at RM1.09. Support is seen at RM75 sen.
The comments above do not represent a recommendation to buy or sell.