VISDYNAMICS HOLDINGS BHD (code: 0120) is not showing any signs of ending its rally going by recent performances.
Despite the surge in the share price over recent weeks and a brief consolidation, the stock mustered momentum over the last two trading sessions and extended its ascent.Based on the daily price chart, the stock has been on a tear since late December last year.
Coupled with elevated levels of trading activity, the positive catalyst that has been pushing the share price higher remains clearly in play.
Apart from the well-established trend line, the share price continues to outpace the sharply ascending key moving averages, which suggests a strong bullish bias.
At current trading levels, the stock is trading at levels last seen in the fourth quarter of 2018.
Immediate resistance for the share price can be found at 79.5 sen.
This represents a high last achieved in October 2018.
However, a stone’s throw away from the mark is the stock’s historical high of 83.5 sen, achieved in August 2017.
The technical indicators are looking robust on the back of the buying activity. Optimistically, they indicate that the stock is not yet heavily overbought.
The slow-stochastic momentum index has risen to 74 points, which remains below the overbought line, and continues to pace higher.
The 14-day relative strength index is overbought at 82 points but remains in a bullish trajectory.
Meanwhile, the daily moving average convergence/divergence line continues to rise in positive territory ahead of the signal line, suggesting continues bullishness.
Support for the counter can be found at 62 sen in the event of profit taking. Below that is further support at 57.5 sen.
The comments above do not represent a recommendation to buy or sell.
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