While the stock remains under strong downward pressure given the falling trajectory of the short-term moving averages (SMA) overhead, the jump in positive momentum indicates a retracement.
The slow-stochastic and 14-day relative strength index (RSI) are both crossing higher into neutral territory after falling into oversold conditions.
Over the immediate term, the share price could be headed for the resistances of RM1.45 and RM1.65, while support is found at 99.5 sen and 74.5 sen.
Samchem Holdings Bhd rebounded off the 50-day SMA yesterday after four straight days of losses.
Based on the daily price chart, the counter remains bullish with the key SMA lines pointing northwards.
The stock sees resistance at RM1.41, a crossing of which would signal a return to its recent high of RM1.54.
There are positive developments in the technical indicators, including the slow-stochastic’s return from oversold conditions. The RSI has bounced off the oversold to move higher, suggesting growing positivity.
Support levels are seen at RM1.23 and RM1.18.
TECHBOND Group Bhd could be seeing further upward price movement as the technical indicators continue to neutralise from oversold conditions.
The stock jumped higher yesterday to suggest that the correction phase is over.
On the technical indicators, the continued pick up in momentum, coupled with yesterday’s positive performance, lends evidence that the stock is gearing up for a rally towards the resistance of RM2.45
The slow-stochastic is crossing above the oversold line while the RSI has crept across as they attempt to neutralise after the recent selldown.
Resistance levels are RM1.59 and RM1.90 while support is pegged at RM1.41 and RM1.30.