EYE-ON-STOCK

SOON after finding a shelter at a near eightyear low of RM1.05 on Nov 9, last year following a prolonged bearish phase, TH Plantations Bhd (TH Plant; Code: 5112) shares staged a steep rally in an attempt to recover.

However, the upward thrust, lasting three weeks, came to a halt at the RM1.27 level, as the bulls could not attract follow-through interest but profit-taking selling.

Subsequently, in the wake of an apparent liquidation, prices succumbed to tremendous pressure to retrace back to the base.

Thereafter, this stock see-sawed over the next couple of months, undergoing consolidation, before another fresh bout of bargain hunting nibbling emerged and this time rouund, lifted prices higher, which saw TH Plant hitting as high as RM1.26 during intra-day session yesterday.

Based on the daily chart, TH Plant has finally bottomed out. Though the shares are generally still in consolidation mode apparently, they have a great potential to carve out a mending path going forward, with investors’ interest building up recently.

Initial resistance is pegged at the recent peak of RM1.27. The next upper strong hurdle is expected at the RM1.40 level, of which a successful penetration would further confirm TH Plant is on the recovery course and when that happens, the immediate upside target will be raised to the RM1.75-RM1.80 area.

Meanwhile, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index were seen ticking up after triggering a short-term buy at the neutral territory on Thursday.

Also on the rise, the 14-day relative strength index improved moderately from a reading of 46 on Wednesday to settle the week at the 67-point level yesterday.

In addition, the daily moving average convergence/divergence histogram climbed over the daily signal line to trigger another buy signal yesterday.

Technically, indicators are positive, implying TH Plant is poised to firm in the immediate term, with a big possibility of making a bullish turnaround.

Current support is lying at the RM1.15level and the recent ebb of RM1.05 will now act as concrete floor. – By K.M. Lee