Success Transformer Corp Bhd took a running start to the week by gapping up at Monday's opening bell and ratcheting up strong gains.
At its intra-day high, the counter put on nearly 14% or 8.5 sen to 74 sen.
This breached the 200-day simple moving average (SMA) overhead and indicated a return to positive sentiment.
However, profit-taking was quick to take over and the share price soon subsided to under the moving average, suggesting that this advance lacked conviction.
There is yet to be enough evidence that the stock has returned to a bullish trend. Some sustained buying interest in coming sessions would help to develop the rally and indicate that the buying interest is not a flash in the pan.
Looking at the daily moving average convergence/divergence line (MACD), there is yet to be a positive crossing with the signal line, which would offer a "buy" signal and and indicate the start of an uptrend.
Neverthless, the MACD line is growing stronger, with another share price advance likely to push it across the signal line.
Over the coming sessions, a further rejection of the 200-day SMA would suggest the return to a consolidation phase.
However, a convicing breach would see the share price challenge the recent high of 76.5 sen, and in crossing, aim towards 80 sen.
The slow-stochastic momentum index has turned move bullish with the percent K oscillator crossing the percent D oscillator in a "buy" signal at 47 points..
The rising 14-day relative strength index confirms the growing momentum at 74 points.
There is suppport for the share price at 64.5 sen, which represents the bottom limit of its recent three-week consolidation channel.
The rising 50-day SMA is fast approaching this point, which helps to reinforce the support.
The comments above do not represent a recommendation to buy or sell.
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