05 May 2012

Technical Analysis: Analyst K.M. Lee says that a positive breakout is imminent for MKH stock price may advance in the short term to challenge RM 2.50 - RM 2.60 upper resistance band

(MKH closing stock price yesterday (4.5.2012) was RM 2.10)

Property developer MKH Bhd recovered sharply from the most recent lows of RM1.92 in late April to achieve a high of RM2.12 on Thursday on renewed buying momentum before turning range-bound amid continuous bargain hunting interest offsetting profit-taking activity, ending two sen to RM2.10 yesterday.

Based on the daily bar chart, prices had over the past several days, were seen making a fresh attempt to resume the rally after undergoing a period of correction. However, more observation is still needed. In this respect, a decisive penetration of the RM2.14-RM2.15 stiff barrier would give investors the confirmation.

Turning to the indicators, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index were rising, ending at the 90% and 73% respectively. It had triggered a buy at the neutral area on Monday.

Similarly, the 14-day relative strength index improved rapidly from a reading of 38 to settle at 77 points.

Meanwhile, the daily moving average convergence/divergence histogram sustained the upward expansion against the daily signal line to retain the bullish note. A buy signal was issued in mid-week.

Analysis suggests MKH shares may advance in the short term, implying that a positive breakout is imminent. If successful, the next upside objective would be to challenge the RM2.50-RM2.60 upper resistance band, and probably, the RM3 mark later, if buying is solid enough.

Initial support is envisaged at the RM2.05 mark. An additional floor is pegged at RM1.99, which is the 50-day simple moving average. - By K.M. Lee

Source: www.thestar.com.my


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