Pantech Group Holdings Bhd
has continued its gains following a breakout of range-bound trading when it moved past the 65.5 sen resistance last Friday.
Based on the daily price chart, the bulls are headed for green pastures following a breach of the 67.5 sen resistance level on Wednesday.
Its next hurdle rests at the 70 sen mark, surpassing which the counter could challenge the recent peak set on Oct 25, 2017, at 74 sen.
Buying interest in the counter has resurfaced since last Friday, judging from the uptick in trading volume.
It continued to grow on Wednesday, and coupled with positive developments on the technical indicators, would suggest a continued bullish bias for the stock.
Looking at the technicals, the slow-stochastic was looking to neutralise from its overbought condition.However, it halted its descent in neutral territory on Wednesday and returned to an ascending posture.
The percentage K is eyeing a crossing with the percentage D, which would result in a “buy” signal, and confirm a positive trend.
The 14-day relative strength index also echoes this bullish posture.
It has crossed over into the lower regions of the overbought territory, but is moving steadily upwards.
The daily moving average convergence/divergence histogram remains positive as well, and it continues to gain strength as it outpaces the signal line.
In the event of a correction, the stock could fall back to the 65-66 sen level, following which it could run in danger of returning to sideways trading.
A further dip into the lower end of the chart would see a cushion at the 61-62 sen level.
The comments above do not represent a recommendation to buy or sell.
Note: This article first appeared in StarBiz Premium yesterday
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