Oriental Holdings' share price has been on an upward trend
since it commenced its rally in December. From the daily chart, the share price
has been trading within tight ranges before breaking out on a few occasions
namely in December, February, May and mid-July. The Bollinger Band tends to
narrow during periods of low volatility, and with a breakout above the upper
band accompanied by high volume, a buy signal is generated. At present, the
chart pattern has also confirmed a bullish breach of the trigger line on the
ascending triangle. Coupled with the upside volatility breakout of Bollinger
Band, the chart provides us with a target price of RM7.80-RM7.90 for a 80- 90
sen upside. The former resistance line at RM6.90 has now turned into support,
with further support provided at RM6.70/75.
On the weekly chart, the 20-week SMA is comfortably above
the 50 and 100-week SMAs with the chart pattern also exhibiting an uptrend. Worth
noting is that Oriental’s share price has been experiencing short term cycles
in its share price in line with the breakouts in its Bollinger Band discussed
above. With the formation of 3 cycles since December, it is likely that the
fourth wave count is underway.
Source: Kenanga
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