Eye On Stock
LYC HEALTHCARE Bhd (stock code: 0075) has continued to make strong advances since seeing a pick-up in buying interest on Sept 13.
The stock showed positive momentum for five straight sessions as at Friday, breaching the uppermost 200-day simple moving average (SMA) for the first time in 4½ months
This puts the share above the key SMAS, indicating a positive turn of events despite the dominant bearish trend that controls the one-year daily price chart.
The 14- and 21-day SMAS have also curved higher, reflecting the positive short-term trend and offering the share price a growing outlook over the immediate horizon.
Based on the daily price chart, the bulls have some room to roam before hitting an obstacle in the form of the 40 sen resistance.
Given the counter’s current healthy technical indicators, there is a likelihood that the rally will continue towards this hurdle, even if it should take a break as it neutralises from overbought conditions.
Further to this, consolidation could ensue near the 40-sen mark, but in the event of continued buying interest, the next resistance can be found nearby at 42 sen, marking the stock’s trading high thus far in 2019
Support for the counter can be found at the 32 sen mark, near the converging shortterm SMAS. Further support is pegged at 30.5 sen. affirming the bullish mood, the slow-stochastic momentum index has travelled nearly to the overbought line at 78 points, but maintains its northbound trajectory to suggest it will continue rising on strong momentum.
The 14-day relative strength index is in extreme overbought conditions, having risen to 94 points, but short of a retreat, continues to look healthy. The daily moving average convergence/divergence line is also looking bullish, having crossed higher than the signal line as well as the zero line to suggest a growing uptrend. mean while, trading volume in the counter remains elevated, with the volume of shares transacted on Friday reaching a one-year high.
The comments above do not represent a recommendation to buy or sell.