Eye On Stocks

Monday, January 17, 2011

TEBRAU Teguh Bhd shares climbed to a 19-month high of 99 sen on follow-through buying momentum in early business before reversing to settle at 90 sen, down 4.5 sen, with weakness in the primary market dampening investors' enthusiasm yesterday.

Based on the daily bar chart, this counter has the potential to overcome the heavy barrier of RM1 going forward despite yesterday's pullback, as interest remains high. If successful, it will bring about a strong buy signal, thus propelling the bulls to a higher ground in the near term.

Apparently, the daily slow-stochastic momentum index was on the uptrend. After pulling back from the 92% level to a low of 68%, the oscillator per cent K reversed up and crossed above the oscillator per cent D to trigger a short-term buy on Jan 13.

Meanwhile, the 14-day relative strength index remained in bullish territory, ending at 89 points yesterday.

Elsewhere, the daily moving average convergence/divergence histogram expanded sharply against the daily signal line to stay bullish. It flashed a buy on Dec 9 last year.

Technically, indicators are painting a positive landscape. Combined with robust trading volumes, it looks like a major breakout may be in the pipeline, clearing the way for prices to challenge the stiff overhead resistance of RM2 in the medium-term, which is the previous rally peak established on April 10, 2007.

Current support is envisaged at the 86.5-sen level.

source: thestar

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