AirAsia X
AirAsia X Bhd
perked up above the short-term SMA lines yesterday as the slow-stochastic rose out of oversold conditions, suggesting some bargain-hunting is taking place.
The share, however, has not yet escaped the correction line that began end-May, and could see further declines.
Some advance to strengthen the bullish momentum on the slow-stochastic (37 points) and the daily moving average convergence/divergence line, which is below the signal line, would help to affirm the rebound. Resistance is found at RM2.15 and RM2.50 while support rests at RM1.66 and RM1.18.
Pentamaster
Pentamaster Corp Bhd surged past the key simple moving averages (SMA) yesterday on strong trading volume to indicate the return of bullish sentiment.
While its current level suggests it remains trapped within a range-bound channel, the share is expected to arrive at the higher end of its trading band before profit-taking ensues.
Overhead, the share is capped by a resistance at RM5.20, which represents its highest point so far this year. A crossing of this hurdle could indicate a break out of the short-term consolidation pressure, and see the stock arrive at the next resistance at RM5.78.
The slow-stochastic has risen to 37 points, as it attempts to return to the midline, while the 14-day relative strength index (RSI) is strong at 55 points. Support is pegged to RM4.65 and RM4.37.
Kein Hing International
Kein Hing International Bhd retraced most of the gains it made earlier in the week in strong profit-taking activity yesterday.
The share, which recorded a sharp plunge off record highs between February and May, is yet to confirm a sustained recovery. However, the share ended above the 50-day SMA line, which suggests some lingering strength following the Monday breakout.
The technical indicators are looking stronger with the slow-stochastic at 55 points and the MACD arriving at the zero line for a positive signal. Resistance is seen at RM1.70 and RM1.89 while support can be found at RM1.14 and 90 sen.
