EYE ON STOCK

AFTER establishing an all-time low of 16.5 sen on Dec 22, last year following a long bearish phase, Eden Inc Bhd (Eden; Code: 7471) shares ticked higher amid fresh bargain hunting interest, attempting to recover.

However, the bulls abandoned the idea midway through as they could not attract persistent follow-through buying momentum, prompting investors to book gains.

In the wake of an apparent profit-taking selling, prices peaked out at 29 sen on June 7 and reversed to a low of 19 sen on June 22, followed by a period of range-bound session on consolidation mode, lasting one month before they spiked again on renewed buying.

Eden rebounded to an intra-day high of 23 sen yesterday.

Based on the daily chart, the prevailing trend of this counter remains bearish, at least for now. But with the latest share price jump and backed by a significant increase in trading volumes, they suggest a revival of investors interest.

If the momentum could be sustained, it could lead to a bullish turnaround going forward.

The immediate resistance is pegged at the 50-day simple moving average of 22.5 sen, followed by the 25 sen hurdle.

A clear penetration of the upper 30 sen mark will see the fate of Eden changing brighter.

Elsewhere, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index were on the rise after flashing a short-term buy at the midrange a week ago.

Mirroring the uptrend, the 14-day relative strength index improved rapidly from a reading of 36 sen in mid-week to settle at the 72 points level yesterday.

In addition, the daily moving average convergence/divergence histogram rose steadily towards the zero threshold, in tandem with the daily signal line after issuing a buy on July 13.

Apparently, indicators are on the mend, suggesting Eden shares has the potential to turn around in the near-term.

As for the downside, current support is anticipated at 19 sen and the historical ebb of 16.5 sen will act as an important floor.