COMFORT GLOVES BHD (code: 2127) extended its winning streak to five days on Friday, reaffirming the short-term uptrend that has developed on the daily price chart.
While the stock is maintaining its bullish mood, it is fast approaching overbought mode, which could mean consolidation is in the pipeline.
Trading volume has dwindled from the heightened levels seen in January following the onset of a bullish catalyst, although it remains on par with the interest seen over recent weeks.
Nevertheless, the outlook remains positive and the uptrend is expected to continue after a healthy consolidation period given the positive sentiment.
At current trading levels, the stock is trading above all the key simple moving averages (SMAs).
The short-term 14- and 21-day SMAs have curved higher, reflecting the positive trend while the longer-term SMAs are also rising to offer support.
On Friday, the share price ended at the resistance level of 92 sen. However, a convincing breach of this level would free the bulls to roam higher towards the next resistance of 97.5 sen.
The share price is experiencing rising support thanks to its recent growth. The immediate support can be found at 89 sen while the next support is pegged to 87 sen.
Looking at the indicators, the technical landscape remains promising although there are new signs that the share price growth will slow down.
The slow-stochastic momentum index has risen to 85 points, indicating overbought levels, although it is maintaining a healthy upward trajectory.
The 14-day relative strength index is also rising at 70 points, which puts it below the overbought levels.
Meanwhile, the daily moving average convergence/divergence line remains on an uptrend, and having crossed the signal line, has signalled bullish momentum.
The comments above do not represent a recommendation to buy or sell.
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