MYR Interest Rate Swap (IRS) Market
As at Friday’s 11am pricing, the IRS curve inched slightly higher in response to the lower MGS yields except for the 15-year and 20-year yields despite the decrease in the fiveyear CDS.
Elsewhere, the three-month Klibor remained at 3.43%.
LOOKING at the short-term formation, Careplus Group Bhd (Code: 0163) experienced a positive breakout in the final week of May and rallied over two weeks of trading, pushing prices to a peak of 44.5 sen on June 9.
Soon, a bout of apparent profit-taking selling brought the counter lower before it re-tested the resistance on July 13, failing which it resulted in a “double-top” pattern thus sending prices into correction mode.
In the midst of a downtrend on Aug 30, Careplus faced heavy selling pressure, which resulted in a sharp drop of seven sen to 32 sen and a return to the pre-breakout levels. It finally found shelter at 30 sen on Sept 8 and successfully filled a small runaway gap before consolidating and trading sideways.
Based on the daily chart, there was evidence of some renewed buying interest over the last two trading days that saw Careplus climbing to 35 sen by market close on Friday.
Volume was piling up, albeit on a gradual pace, with 9.82 million shares exchanging hands yesterday and should it continue to grow over the next few days, this stock could pull itself out of the current bearish state to more lofty levels.
As of now, the descending trend line remains intact at 37.5 sen. If the counter challenges the resistance, which coincides with the uppermost 100-day simple moving average, a decisive breakout will propel Careplus to the 41-sen mark. The next upper hurdle is anticipated at the 44.5-sen level.
Technically, indicators are painting a promising pictogram, with the slow stochastic index showing a sharp upturn and the oscillator K per cent outpacing the oscillator D per cent. A short-term buy was issued on Sept 22.
The daily moving average convergence/ divergence histogram is maintaining its strong upwards trajectory as it prepares to enter positive territory while money flow remains healthy just below overbought territory. The 14-day relative strength index is bullish but slightly overbought at 76 points.
On the contrary, if correction kicks in, a pullback would see support at the 33-sen mark, and below that, the 30-sen level last touched on Sept 8. — The comments above do not represent a recommendation to buy or sell.