Mah Sing Group Bhd (code: 8583) advanced for a second day to rise above the uppermost 14- and 50-day simple moving averages (SMA) as bullish sentiment resumed on the counter.

The stock had undergone a correction in August and September, which saw a breakdown of the ascending trend line, before bouncing higher this past Monday.

Over subsequent trading sessions, the share price will challenge the immediate resistance of 72.5 sen, a positive breach of which would see the bulls taking charge of the daily price chart.

Subsequent gains on the chart would also see the short-term 14- and 21-day SMAs turn their head northwards to indicate the start of a short-term uptrend. The rise of the 21-day SMA over the 50-day SMA would help to confirm a positive reversal and end to the correction phase.

At yesterday’s closing price, the stock paused just below the hurdle of 72.5 sen, indicating a breather before the share price extends its rebound and makes it way towards a higher target of 80 sen.

Further evidence of upside bias is seen in the technical indicators, where there continues to be upwards pressure as momentum continues to grow on improved sentiment.

The slow-stochastic momentum index has risen to 69 points and remains healthy below overbought levels. The 14-day relative strength index is also looking healthy above 50 points and rising.

Meanwhile, the daily moving average convergence/divergence (MACD) line is edging higher towards the signal line. A further boost of buying interest would see the indicator make a positive crossing to give a “buy” signal as it also moves higher into positive territory.

On the lower end of the chart, the stock sees support at 64.5 sen, and next support at 60.5 sen, near a convergence of the long-term 100- and 200-day SMAs.

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

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