Favelle Favco Bhd
's rally extended the bullish momentum for a fourth straight day. With the latest development, the share is aiming to return to a 21-month high of RM2.36. Higher still, resistance is pegged to RM2.78.
Based on the daily price chart, the key simple moving averages (SMA) are offering support to the rally as the 50-day SMA line crossed above the 200-day to signal the positive sentiment at the close of last week's trading. The technical indicators remain rising despite having breached overbought levels of trading.The slow-stochastic is angled higher at 82 points and the 14-day relative strength index (RSI) continues to ascend at 72 points while the daily moving average convergence and divergence (MACD) histogram is growing more positive.
