Guan Chong Bhd
's rally is underpinned by strong momentum and active trading volume, suggesting sustained gains over the coming term.
The technical indicators have hit overbought levels, but given the continued momentum strength, the uptrend is expected to continue.
The daily moving average convergence/divergence (MACD) histogram is on a steep ascent, reflecting the strong bullish trend.
Trading volume at 27.59 million shares has hit its highest in 22 months.
The share is expected to arrive at resistance levels of RM1.20 and RM1.50.
Meanwhile, support is pegged at 90 sen and 65 sen.
Top Glove Corp Bhd recorded a spike in momentum yesterday as its share price recovered to two-week highs.
The share is looking at a recent high of 88 sen, following which it will aim for RM1.10.
Looking at the technical indices, the slow-stochastic is at a robust 66 points while the 14-day relative strength index (RSI) is sitting on 64 points.
The MACD histogram, which has showed declining momentum in recent days, is rebounding to signal a return to bullish growth.
Support for the share is found at 75 sen and 53 sen.
BM Greentech Bhd is poised to extend gains following a steep gap up in May that returned the share to January levels of trading.
Should the share extend its rally past RM1.66, it could see the rally follow through to a July peak of RM1.98.
Trading volume on the share remains on pace with the high volumes seen in recent days.
The slow-stochastic has retraced from overbought levels to 74 points, but is showing signs of remaining at high levels of momentum.
The RSI has continued to push higher into overbought levels at 75 points, and remains ascending.,
The MACD histogram, meanwhile, reflects a rapid increase in momentum.
Support for the share lies at RM1.44 and RM1.10.
The comments above do not represent a recommendation to buy or sell.
