Eye On Stock

EXCEL Force MSC Bhd (code: 0065) continued its rally yesterday to push past the 200-day simple moving average (SMA).

The stock’s V-shaped recovery after hitting a trough on March 17 to return to January 2020 levels underlines the bullish momentum that has come into play.

Coupled with the healthy trading volume yesterday, which was its highest in more than three months, there looks to be growing investor interest in the counter.

At the current trajectory, the share price is looking towards its 2020 peak of 58.5 sen, which serves as the overhead resistance.

On the daily price chart, the sustained rebound is unwinding the longer-term bearish formation. While the short-term SMAS are rising at a rapid clip, the 50-day SMA has also made a U-turn higher to indicate the stock’s changing fortunes.

Still, the 50-day SMA remains submerged below the 100-day SMA and there remains some ways to go before the stock can reverse the dominant downtrend.

For the coming term, however, the technical indicators suggest the onset of bullish momentum and more gains over the horizon.

The slow-stochastic turned higher on Wednesday and crossed into a “buy” signal. It remains below the overbought line, which suggests that momentum continues to be at healthy levels.

The 14-day relative strength index, however, has moved into overbought territory at 83 points but remains in an upward angle, indicating continued growth.

The current uptrend is reflected in the daily moving average convergence/divergence (MACD) line, which is pacing higher above the zero signal. Should the MACD outpace the signal line, it would indicate growing momentum in the ongoing rally.

Resistance for the stock can be found at 58.5 sen and 67 sen. To the downside, support is found at the recent low of 45 sen and 41.5 sen.

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