Saturday February 19, 2011
By K.M. LEE
AFTER retracing from the RM5.16 level on Feb 9 to a low of RM4.91 two days later during the recent brief correction process, Axiata Group Bhd rebounded in the wake of renewed bargain-hunting buying momentum, propelling the shares to a high of RM5.19 during intra-day session yesterday, also the best since May 2008.
Very clearly, a tentative bullish breakout has been carved out on the daily bar chart and according to the books, this type of positive development usually will open the doors for more scaling going forward. However, volumes must expand accordingly to sustain the trend.
Elsewhere, the daily slow-stochastic momentum index was firming. It's oscillator per cent K reversed up and climbed over the oscillator per cent D at the neutral zone to trigger a short-term buy on Thursday.
Likewise, after pulling back from the top to the mid-range, the 14-day relative strength index started inching up again on Monday to settle at around the 75 points level yesterday. The daily moving average convergence/divergence histogram expanded sharply against the daily signal line to retain the bullish note. It flashed a buy on Feb 8.
Analysis on the technical indicators, combined with the latest price action suggest Axiata Group shares are on the right track to challenge the historical peak of RM5.58, established on April 28, 2008. A decisive penetration of this heavy barrier will see the bulls continuing to explore the unknown territory until buying momentum fizzles out. Initial support is envisaged at the RM5-RM5.01 band. An additional floor is pegged at the RM4.90 level, which is the 21-day simple moving average.
● The comments above do not represent a recommendation to buy or sell.
http://biz.thestar.com.my/news/story.asp?file=/2011/2/19/business/8088479&sec=business
No comments:
Post a Comment