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BASED on the daily price chart, SIG Gases Bhd (code: 5181) has had an overall positive year with regard to its share price, growing nearly 200% year-to-date.

It has spent much of 2017 on a bullish trajectory and while some profit-taking was seen yesterday, the latest leg of uptrend remains intact.

The counter hit an all-time high in August, resulting in an ensuing correction, which bottomed out at 88 sen on Sept 18. It then travelled in range-bound trading for about a month before finding its legs again and resuming upwards movement.

On Dec 17, the counter breached a resistance level of RM1.10. By yesterday, it had hit an intra-day high of RM1.23, within striking distance of the next resistance at RM1.26.

However, given the counter’s overbought conditions, some investors looked to cash in on the gains, leading to a fall in the share price. At present, the short-term ascending trend remains intact and the stock may climb again.

To take a bullish perspective, should the immediate support at RM1.10 hold during this pullback, and buying interest return over the last week of 2017 trading, the counter could head back towards the upper resistance in the mid-RM1.20s.

Looking at the technical indicators, the slow-stochastic momentum index is falling from an overbought position and has triggered a “sell” signal.

The 14-day relative strength index is also falling after levelling out at 75 points, and has returned to more neutral ground.

However, the daily moving average convergence/divergence histogram is still rising from the neutral line. It gave a “buy” signal on Dec 14, which preceded the resistance breach at RM1.10. The money flow index also continues to rise at 84 points.

Immediate support for the share price is pegged at the RM1.10 with the next support resting at RM1. Concrete support rests at the bottom-most 200-day simple moving average at 90 sen.

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