Bermaz Auto Bhd
jumped above the long-term 200-day simple moving average yesterday as the rally picked up steam on burgeoning momentum.
The share has started on a recovery trend, rising towards a target of RM1.18 as it seeks some of the losses made over a 17-month downtrend.
Looking at the technical indices, the momentum has risen to overbought conditions, although the steep incline suggests a sustained uptrend over the coming term.
The daily moving average convergence/divergence (MACD) histogram has also charted a sharply higher positive bar, reflecting the strong bullish momentum.
On the lower end of the chart, there is support at 70 sen and 50 sen.
UWC Bhd is within arm's range of a stiff resistance at RM4.62, which could put a cap on its gains for now as the overbought technical indices take a breather to cool off.
Nevertheless, a fresh buying lead could take the share higher to a higher price target at RM5.
On the technical charts, the slow-stochastic has risen to 86 points while the 14-day relative strength index (RSI) has climbed to 71 points.The MACD histogram is pushing progressively higher to signal growing positive momentum.Support can be found at RM4 and RM3.53.
Ranhill Utilities Bhd has been trending lower in consolidation mode over the last three months, but a rebound from oversold levels appears to be in the offing.
The slow-stochastic is currently pacing higher from oversold conditions at 17 points while the RSI is also rising at 47 points to return to more bullish pastures.
The MACD has dwindled amid the ongoing range-bound trading, but remains positive.
Resistance be seen at RM1.81 and RM2.06. Support is pegged to RM1.65 and RM1.30.
The comments above do not represent a recommendation to buy or sell.
