KESM Industries Bhd
jumped yesterday to challenge the 50-day simple moving average (SMA) amid a return of bullish momentum.
The stock has been seen gaining traction over the last three weeks as it retraced losses made during the August and September period.
Should the stock take out the 50-day SMA, it could continue it progress towards an August high of RM7.60, and beyond that, RM8.
The technical indicators are looking bullish with the slow-stochastic rising to 80 points and the 14-day relative strength index (RSI) jumping to 81 points.
Short of crossing the immediate resistance, however, the daily moving average convergence/divergence (MACD) line appears locked in negative territory even though it continues to make progress towards the zero line.
Support for the share price can be found at RM6.55 and RM6.11.
Maxis Bhd put on more gains yesterday to approach the 50-day SMA and erase the losses made in early October.
A positive crossing of the key SMA should confirm the return to a positive trend and see the share price rally past the immediate resistance at RM3.70, towards the higher resistance of RM3.87.
The slow-stochastic has hit a very strong, albeit overbought level of 98 points, suggesting sustained bullish momentum. The RSI remains robust at 68 points.
Should the stock fail to overcome the immediate hurdle, however, profit-taking could set in, taking the share below the descending trend line and back into correction territory.
Support lies at RM3.50 and RM3.30.
Genting Plantations Bhd returned to a short-term rally yesterday after some profit-taking in the previous session.
Momentum on the stock has picked up in the latter half of October, leading to expectations of further positive retracement.
However, the dominant downtrend stretching back from April remains intact, suggesting the stock could face downward pressure at the resistance found at RM6.30.
The slow-stochastic remains bullish at 73 points while the RSI is healthy at 65 points.
Support for the counter is pegged to RM5.78 and RM5.50
The comments above do not represent a recommendation to buy or sell.
