The share price rose in intra-day trade on Tuesday to a peak of 57 sen before profit-taking took over, and returned it to the previous session close at 53 sen.
Nevertheless, the surge in momentum was a positive sign for the counter, and suggests a return of buying interest.
The share price is currently trading above all the key simple moving averages (SMA), which shows bullish sentiment. The rising short-term 14- and 21-day SMAs are angling to cross above the 50-day SMA, which would signal the short-term momentum building on the price chart.
At its highest on Tuesday, the stock came close to its recent high of 57.5 sen, which represents its resistance level.
Moving forward, should the share price breach this hurdle it would be seen as a continuation of the ascending trend line on the price chart between August and December 2019. The next price target is pegged to 59.5 sen.
Should buying interest subside, there is support at the 49.5 sen mark.
The positive momentum is reflected in the technical indices. The slow-stochastic momentum index is in a “buy” formation with the percent K oscillator at 58 points.
The 14-day relative strength index has risen to overbought levels at 73 points but is poised to rise higher in extended overbought mode.
Meanwhile, the daily moving average convergence/divergence line has picked up above the zero line to suggest the return of a positive trend.
The comments above do not represent a recommendation to buy or sell.
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