Heitech Padu Bhd's share price made a sharp incline in Monday trading after breaking through a resistance to extend its rebound.
The advance put the share price above all the key simple moving averages (SMA), and notable gapped up above the 50-day SMA in a sign of bullish sentiment.
Given the strength of the momentum, there is a likelihood the stock will continue to ascend before reaching a brief halt to neutralise.
At Monday's trading high of RM1.24, the counter was progressing towards the resistance of RM1.27, which marks a recent high point.
The rapidly ascending technical indicators suggest a sharp increase in buying sentiment.
While there may soon be a crossing into overbought levels, the onset of bullish sentiment suggest a return to a positive trend over the longer term.
A minor consolidation is to be expected given the rapid ascent, although extended buying interest could see the hurdle breached as the share price rises towards the higher target of RM1.44.
Support for the counter can be found at RM1.07, whereby a negative crossing would indicate the start of a consolidation phase. Further support is found at 95.5 sen, marking the share price's recent low point.
The slow-stochastic momentum index is nearing overbought levels at 73 points although it is showing signs of returning lower levels as consolidation pressures mount.
The 14-day relative strength index is also pushing higher at 67 points, and will cross into overbought territory over another session of buying.
Meanwhile, the daily moving average convergence/divergence (MACD) line has crossed over the signal line to give a "buy" signal, reflecting the bullish momentum on the price chart.
A further rise in the MACD would see it rise above the zero line, which would signal the resumption of an ascending trend.
The comments above do not represent a recommendation to buy or sell.
Did you find this article insightful?