TOMYPAK HOLDINGS BHD advanced on Tuesday in a sign of returning momentum after the end of a correction phase.
On Tuesday, the share price soared above the key simple moving averages (SMA) to signal returning bullish sentiment to the counter.
Tuesday's advance came within striking distance of a recent high of 55.5 sen, marking the 38.2% Fibonacci retracement level of the correction seen between Jan 14 and Aug 27, making it a significant hurdle to a positive outlook.
Trading volume during the session also rose to a seven-month high, indicating the return of investor interest to the stock.
In the event of a positive crossing of the 55.5 sen mark, the stock could see further resistance at 62.5 sen, which offer a Fibonacci retracement level of 61.8%.
There is a convergence of the SMA lines at the 50-51 sen level, reflecting the sideways trading channel. This trading level offers immediate support to the share price in the event of a retreat.
However, a breach of the support could see the stock retreat to its recent low of 47.5 sen, and signal a continuation of the recent correction phase.
The technical indicators are currently favouring the bulls. The slow-stochastic momentum index has triggered a "buy" signal as the percent K oscillator meets the percent D oscillator.
The daily moving average convergence/divergence line similarly is sitting atop the signal line. A further advance on buying would complete the crossing and offer a "buy" signal.
The 14-day relative strength index has passed the centre line at 56 points, also suggesting a rising momentum.
The comments above do not represent a recommendation to buy or sell.
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