Business

Saturday January 21, 2012

Eye on Stock


UNISEM (M) Bhd, a semi-conductor counter extended the recovery process amid follow-through buying interest, sending the shares to settle up three sen to RM1.35 yesterday, also the best since August, last year.

Despite the recent advances, the mid-term trend still is bearish. However, it has the potential to come out of the doldrums as development over the past several days painted a pretty promising pictogram.

Based on the daily bar chart, prices are now supported by the rising short-term 14-day simple moving average (SMA) and the 21-day SMA lines and as long as they are able to retain the posture above the two moving averages, the outlook would be bright.

Though the daily slow-stochastic momentum index had indicated a tentative topping out at the 80% level, the 14-day relative strength index was holding firm at the bullish territory.

Elsewhere, the daily slow-stochastic momentum index continued to scale, moving in tandem with the daily signal line to keep the bullish note. It had triggered a buy on Dec 13, last year.

On the back of an encouraging landscape, combined with the gradual expansion in the trading volumes, it looks like Unisem is likely to stay on the mending path in the short term.

A push above the 200-day SMA of RM1.38 may boost prices higher to challenge the tough descending resistance line of RM1.70, of which a decisive breakthrough will signal a bullish turnaround.

Concrete support floor is resting at the RM1.21 mark. - By K.M. Lee

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

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