SHH (7412) - Eye on stock
Saturday, 23 August 2014
SHH Resources Holdings Bhd (SHH) retraced from the recent high of RM1.11 on May 22 to a low of 81 sen on May 27 on correction owing to an apparent profit-taking activity after a steep rally.
Thereafter, the shares turned sideways on bargain hunting interest alternated with light selling, undergoing consolidation before jumping on renewed buying momentum, pushing prices to as high as RM1.12 during intra-day session yesterday, the best in a decade.
Based on the daily chart, a bullish breakout has been detected and it looks real, as the breakthrough was supported by a significant increase in trading volumes.
Another good day, sending prices above yesterday’s intra-day peak of RM1.12 would give investors the confirmation that this stock is indeed on the way up again after a three-month breather.
The immediate upside objective would be to challenge the RM1.26 hurdle, followed by the RM1.43-RM1.45 range.
The next upper strong resistance is resting at the RM1.57-RM1.60 band.
Elsewhere, the daily slow-stochastic momentum index has reached the bullish territory, It had issued a short-term buy at the bottom the previous week.
Meanwhile, the 14-day relative strength index improved significantly, up from a reading of 27 on Aug 13 to settle at 70 points yesterday.
In addition, the daily moving average convergence/divergence histogram climbed over the daily signal line to trigger a buy call yesterday.
Technically, indicators are painting a pretty encouraging pictogram, implying prices are poised to advance on follow-through buying interest in the short term. As for the downside, initial support is seen at the 92-sen line.
A lower floor is resting at the 86-sen level while important support is pegged at the 100-day simple moving average of 78 sen.
The comments above do not represent a recommendation to buy or sell.
http://www.thestar.com.my
Saturday, 23 August 2014
SHH Resources Holdings Bhd (SHH) retraced from the recent high of RM1.11 on May 22 to a low of 81 sen on May 27 on correction owing to an apparent profit-taking activity after a steep rally.
Thereafter, the shares turned sideways on bargain hunting interest alternated with light selling, undergoing consolidation before jumping on renewed buying momentum, pushing prices to as high as RM1.12 during intra-day session yesterday, the best in a decade.
Based on the daily chart, a bullish breakout has been detected and it looks real, as the breakthrough was supported by a significant increase in trading volumes.
Another good day, sending prices above yesterday’s intra-day peak of RM1.12 would give investors the confirmation that this stock is indeed on the way up again after a three-month breather.
The immediate upside objective would be to challenge the RM1.26 hurdle, followed by the RM1.43-RM1.45 range.
The next upper strong resistance is resting at the RM1.57-RM1.60 band.
Elsewhere, the daily slow-stochastic momentum index has reached the bullish territory, It had issued a short-term buy at the bottom the previous week.
Meanwhile, the 14-day relative strength index improved significantly, up from a reading of 27 on Aug 13 to settle at 70 points yesterday.
In addition, the daily moving average convergence/divergence histogram climbed over the daily signal line to trigger a buy call yesterday.
Technically, indicators are painting a pretty encouraging pictogram, implying prices are poised to advance on follow-through buying interest in the short term. As for the downside, initial support is seen at the 92-sen line.
A lower floor is resting at the 86-sen level while important support is pegged at the 100-day simple moving average of 78 sen.
The comments above do not represent a recommendation to buy or sell.
http://www.thestar.com.my
