The ongoing rebound began when the stock bounced off a low of 20 sen on Jan 3 to signal the end of its correction phase.
At current trading levels, the stock has risen above all the key simple moving averages (SMA) and looks unhindered in its approach to the resistance at 34.5 sen.
The short-term SMAs remain at a downward-facing angle, but should turn northbound with further gains in the subsequent sessions.
There are also hopeful signs in the technical indicators, which are putting on bullish momentum.
The slow-stochastic momentum index is in a “buy” formation as the percent K oscillator crossed above the percent D oscillator. At 48 points, the indicator is showing room for further growth before hitting overbought levels.
The 14-day relative strength index also shows optimism as it continues to rise at 63 points.
Meanwhile, the daily moving average convergence/divergence (MACD) line has also given a “buy” signal by crossing above the signal line. While the MACD remains in negative territory, a further advance could take it above the zero line and signal the start of a positive trend.
Given the healthy levels of the indicators, the rebound can be expected to continue over the immediate term.
The resistance levels can be seen at 34.5 sen and 39 sen, the latter of which represents the share price's pre-correction high.
On the low side, support can be found at 23.5 sen and 20 sen, a breach of which would signal a failure in the rebound and a return to a correction phase.
The comments above do not represent a recommendation to buy or sell.
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