DPI Holdings Bhd (code: 0205) capped the week with an extended rebound on Friday, culminating in four straight days of gains for the share.
The stock is en route to retracing the losses it made during the recent recent correction when it fell off a peak of 34.5 sen.
However, the correction ended as the shar eprice bounced off the 100-day SMA, which has proved to be a reliable support that has remained intact over eight months.
Given the past week’s sustained performance, the stock looks set to continue its bullish trajectory.
Based on the daily price chart, there are bullish prospects for the stock as it moves higher ahead of the key simple moving averages (SMA).
Friday’s advance saw the share price cross above the short-term 14- and 21-day moving averages as it progressed towards the immediate resistance of 32 sen.
Trading volume on the counter also spike to its highest since the start of the month, signaling a return of investor interest.
Looking at the technical indicators, momentum has picked up to a bullish pace. The slow-stochastic momentum index has risen to overbought conditions at 86 points.
While the indicator is expected to taper owing moving forward, the indicator remains healthy given the strong momentum.
In the event of the slow-stochastic attempting to neutralise, the stock should enter a brief consolidation period before continuing on its upward journey.
In other indicators, The 14-day relative strength index reflects the bullish growth at 62 points.
The daily moving average convergence/divergence line has curved higher to the zero line and is looking to cross the signal line in a “buy” formation.
Past the immediate resistance of 32 sen, the share price could rise towards a peak of 34.5 sen. There is support for the stock to 29 sen and 26.5 sen.
The comments above do not represent a recommendation to buy or sell.
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