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The Star Malaysia - StarBiz - - News - By FONG MIN YUAN

WAH Seong Corp Bhd be­gan a pe­riod of up­trend in the wake of re­newed bar­gain hunt­ing in­ter­est af­ter hav­ing bot­tomed out at 63.5 sen on June 2, last year.

In the en­su­ing months, the counter’s sim­ple mov­ing av­er­age (SMA) lines cor­rected them­selves from a “death-cross” po­si­tion and be­gan a pe­riod of re­cov­ery.

There was a spike in in­vestor in­ter­est in the stock in Oc­to­ber, which saw a surge in trad­ing vol­ume and a steeper up­wards tra­jec­tory to cross the RM1 thresh­old and be­yond. Based on the daily price chart, the stock touched the im­me­di­ate re­sis­tance level at its in­tra-day high of RM1.20 on Tues­day, dis­play­ing that there is still mo­men­tum be­hind this re­cent push al­though in­vestors cashed in on the in­crease, bring­ing it back to its open­ing price of RM1.16. The counter has left the SMAs be­hind, with the 14-day SMA be­ing the spring­board for up­wards move­ment. The 200-day SMA has been in­tact since the bull face formed in De­cem­ber last year, and con­tin­ues to lend a healthy curve for the up­trend.

The tech­ni­cal in­di­ca­tors also lend a pos­i­tive out­look to the counter. The slow-sto­chas­tic mo­men­tum in­dex is push­ing higher on the chart but re­mains be­low the over­bought line.

Else­where, the daily mov­ing con­ver­gence/di­ver­gence his­togram looks bullish and is an­gling fur­ther north of the sig­nal line.

Also, the 14-day rel­a­tive strength in­dex also shows strength in the cur­rent trend, hav­ing moved back across the over­bought line, but re­mains healthy.

To the up­side, cross­ing the RM1.20 hurdle, this stock will face the next re­sis­tance at the RM1.28 level.

On the flip side, should there be any pull­back ow­ing to profit-tak­ing ac­tiv­ity, im­me­di­ate sup­port for the stock is pegged to the 14-day SMA at the RM1.10 mark, while the 50and 100-day SMAs of­fer more sup­port at the 98 sen to RM1 range.

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

Note: This ar­ti­cle first ap­peared in StarBiz Pre­mium yes­ter­day.

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