SUPPORTLINE

ON Wednesday, YKGI Holdings Bhd resumed its push upwards on positive momentum, and trading volume rose to levels not seen since April 2017. This recent price push began on Feb 20, when the counter gapped up on strong momentum to spark off a positive breakaway trend. The share price was taken to a recent peak of 27.5 sen before slipping into consolidation mode while the overbought levels full neutralised. At present, the slow-stochastic momentum index has returned below the 80-point mark but is once again facing a northerly direction. The 14-day relative strength index also attempted to neutralise but came short of reaching the overbought line before returning to an upwards trajectory. Meanwhile, the daily moving average convergence/divergence histogram continues to move with bullish momentum above the zero line. The technical indicators and pattern on the daily price chart lend enough evidence to suggest that this uptrend is not yet over. At Wednesday’s closing high of 29.5 sen, it crossed the 28.5 sen resistance, which took the counter decisively out of range-bound trading and into greener pastures. A trading gap lies, opened during strong selling pressure in November 2016, waits to be closed. Should buying interest persist, it may be drawn towards closing that downside gap and hit the next resistance point at 30.5 sen, following which it may target the 33 sen mark. The stock is seeing immediate support at the 28.5 sen level. A slide in buying interest may see some profit taken off the table and a negative retracement towards stronger support at 25 sen. The uppermost 200-day simple moving average hovers above the 20 sen mark, which also poses as a crucial support for the counter, as it marks the start of the breakaway gap left behind on Feb 20.

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

Note: This article first appeared in StarBiz Premium yesterday.