Supportline

OCK GROUP Bhd is keeping to a positive bias despite the recent consolidation as it made an advance past the uppermost 21-day simple moving average (SMA) in Wednesday trade. Crossing briefly past the moving average in intra-session trading, the stock looks ready to resume a rally as momentum grows. The stock managed to stay above the 50-day SMA during its consolidation phase, using it as a platform to bounce higher and erase some of the declines it made over a three-week period. At its current trajectory, the stock is aiming for the 64-sen resistance level, which was last achieved in the final week of September. Higher than this, the share could fully recover its recent losses and hit its recent high of 66.5 sen to reclaim its peak value of 2019. The dominant trend on the daily price chart remains bullish, as the share price shows a staggered advance since May 27 this year. The 50-day SMA remains growing and offers lift to the share price. It is currently moving near the 58-sen immediate support. Next support for the stock is pegged to 56 sen. Looking at the technical indicators, the forecast on the stock is increasingly bullish. The slow-stochastic momentum index has crossed into a “buy” signal with the percent K oscillator heading higher at 42 points. The 14-day relative strength index also shows growing strength at 62 points, with room to grow before hitting overbought levels. The daily moving average convergence/divergence line has narrowly missed entering negative territory as it bounced off the zero line. It now looks headed for a positive crossing with the signal line, which in so doing would signal a “buy” and the resumption of positive momentum.

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

Note: This article first appeared in Starbiz Premium yesterday.