Eye On Stock - TEK SENG Holdings Bhd


  • Business
  • Saturday, 09 Nov 2019

TEK SENG HOLDINGS BHD (code: 7200) advanced for a second straight day on Friday after ending a correction phase with a convincing rebound.

With yesterday’s performance, the stock is in good stead to return to its recent high of 30 sen, hit on Oct 16.

The 30-sen mark serves as a crucial resistance, with a breach representing the continuation of a staggered climb that extends back to mid-September. Failure to cross this point would mark the start of a consolidation phase.

Should the share price manage to surpass the resistance, it will embark on a fresh ascending trend and strike for the 33.5 sen mark achieved in July this year.

Support for the stock can be found at 28 sen, which represents its Thursday closing price. Lower support is pegged to 25.5 sen, which represents the stock’s recent low.

Based on the daily chart, the stock is looking bullish as it is trading above all the key simple moving averages (SMA).

The moving averages are growing with the 50-day SMA aiming to rise above the 100-day SMA in a bullish crossing.

Trading volume over the last two sessions were also elevated, returning to their highest since the share price peaked in July.

It is promising to note that despite the share price’s recent rapid advance, the technical indicators continue to rise below overbought territory.

The slow-stochastic momentum index is in a “buy” position as the percent K oscillator has crossed above the percent D oscillator, and continues to grow at a healthy level of 47 points.

The 14-day relative strength index is also pushing higher at 61 points, which suggests continued momentum over the coming term.

Meanwhile, the daily moving average convergence/divergence (MACD) line is on the verge of issuing a “buy” signal as it sits atop the signal line.

Having kept above the zero line, the MACD is suggesting a continued uptrend with momentum growth.

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


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