Business

Saturday November 14, 2009

Eye on stock

By K.M. Lee


FINANCIAL services counter, Affin Holdings Bhd recovered to a 22-month high of RM2.37 during intra-day session amid follow-through buying momentum before paring gains slightly to settle at RM2.34, up five sen in the wake of light profit-taking taking activity yesterday.

Based on the daily bar chart, a bullish breakout has been detected on Thursday and most importantly, it was supported by huge trading volumes. Theoretically, this kind of positive development usually would open the windows for more upswing going forward.

Turning to the indicators, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index remained in buy mode. Despite reaching the overbought territory, they show no sign of tapering off just yet.

Likewise, the 14-day relative strength index extended the upward thrust into the overbought territory, ending at 85 points yesterday. After flashing a buy signal on Tuesday, the daily moving average convergence/divergence histogram continued to expand upward against the daily trigger line to retain the bullish note.

Technically, Affin Holdings Bhd has carved out a constructive route map over the past several months for a probable full recovery to the previous rally peak of RM3.08 in the medium-term. Perhaps, investors can consider taking up a position, if one is optimistic.

Initial support is anticipated at RM2.25. An additional floor is set at RM2.19.

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


AFFIN : [Stock Watch] [News]

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