Going by the current trend, the share price is headed for the resistance at 56.5 sen, whereupon it might take a pause before resuming its ascent.
The 14-day relative strength index has risen to above 60 points, which gives it room to grow before hitting overbought levels.
The slow-stochastic is also looking bullish as it crosses the 50-point line to suggest renewed momentum.
A higher price target for the stock is found at 62.5 sen. To the lower end, there is support at 50 sen and 48 sen.
Tomypak Holdings Bhd has ended its correction and is bouncing higher to resume an uptrend.
Following two days of gains, the stock is looking towards regaining the share price levels of 91.5 sen and 94.5 sen.
Given the continued lift from the short-term 14- and 21-day simple moving averages, the counter looks well supported and is expected to continue its bullish ascent.
The technical indicators are in agreement as the slow-stochastic bounced off the oversold line to head higher in Wednesday trade.
There is support for the stock at 84 sen, whereupon a breach would see the stock resume a correction trend.In the event of a sharp retreat, the share price should find the next support at 77.5 sen.
MBM Resources Bhd bounced higher on Wednesday to suggest that some retracement could be in the offing.
The stock had declined sharply since the start of October on a downturn in sentiment.
However, Wednesday’s bounce could mean some bargain-hunting in the days ahead. The slow-stochastic and relative strength index have returned from oversold levels as they attempt to neutralise.
The 21-day simple moving average near the RM2.93 serves as resistance overhead. A positive breach of this level would signal a climb to RM3.10.
To the downside, support is pegged at RM2.60 and RM2.50.
The comments above do not represent a recommendation to buy or sell