Comintel Corp

 

Click to view larger image.

Comintel Corp Bhd saw a breakout of its short-term pattern on Tuesday, passing the resistance at the uppermost 200-day simple moving average (SMA) at its close of 86 sen.

Based on the technical indicators, it can be seen rising further to trade in a higher range.

The counter had been wallowing in the doldrums in recent months. After falling off its recent peak of 98.5 sen on Oct 22, the counter adopted a bearish posture with several strong pullbacks putting it under pressure. 

However, following the stock's rebound off its recent low of 26 sen, it formed a “double bottom”, which signalled the reversal of a downtrend.

The breakout was forthcoming as, looking at the daily price chart, the counter had a history of strong movement and smashing through resistance levels. Coupled with positive technical indicators, it mustered the energy for a strong upwards push. 

Judging from the current momentum and trend, the stock looks to be headed for even greener pastures. However, buying interest has to be maintained to push past the key resistance levels and maintain an uptrend.

Following Tuesday's share price surge, the counter will strike for the 90 sen level before progressing further to 96 sen and challenge the recent peak at 98 sen.

The slow-stochastic momentum index continues to rise, having bounced off the oversold line on Monday to cross into a "buy" call. 

The daily moving average convergence/divergence histogram is also looking more bullish as it heads higher in positive territory.

Meanwhile, the 14-day relative strength index is on a strong trajectory.

To the lower end of the chart, a correction could see the stock return to the 82 sen mark before being drawn further to the 74 to 75 sen level. Falling though that, the counter could travel to 71 sen and the recent low of 67 sen.

The comments above do not represent a recommendation to buy or sell.