Berjaya Sports Toto

BERJAYA Sports Toto Bhd (BJToto; Code: 1562) shares slumped to a low of RM2.25 in late August, the worst level since May 2003, dragged down by persistent profit-taking liquidation pressure. At that moment, prices looked frail and defenceless. Hence, prices risked sustaining the downward spiral and appeared in great danger of slipping below RM2.06-RM2.10 concrete floor, going forward.

Fortunately, BJToto avoided another major breakdown, as investors stepped out from the sidelines to seek bargains and their actions had led the shares to trade sideways briefly before pushing it to a higher ground amid greater buying momentum.

BJTtoto shares hit a two-month high of RM2.41 during intra-day session before trimming gains in late trade to close up four sen at RM2.36 on Thursday. Based on the daily chart, the prevailing of this stock, which is bearish apparently, has not changed just yet despite the recent advances.

However, it has the potential to come out of the doldrums, if the present buying interest can be stretched further. The immediate upside target will be to test the 100-day simple moving average (SMA) of RM2.47.

The next hurdle is pegged at the uppermost 200-day SMA of RM2.71, also a pretty heavy resistance, of which a successful penetration accompanied by bigger trading volumes will signal a bullish turnaround. So, look out for that. Elsewhere, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index were on the rise after triggering a short-term buy at the midrange on Wednesday. Mirroring the uptrend, the 14-day relative strength index settled at 75 points on Thursday, up from a reading of 44 points in the previous week.

In addition, the daily moving average convergence/divergence histogram continued to scale and returned to the positive territory, rising in tandem with the signal line to keep the buy call issued on July 27.

Technically, indicators are seen improving, albeit on a gradual pace, thus offering investors a ray of hope that BJToto shares may embark on a new recovery course. As for the downside, a clear breakdown from the solid floor of RM2.06-RM2.10 range may see the lower support of RM1.90 and the RM1.70 line becoming vulnerable. —

The comments above do not represent a recommendation to buy or sell.