Wednesday 29 August 2012

Kenanga Research - Highlights / Stock Pick of the Day : Hup Seng Industries Berhad


Hup Seng's share price has been on an uptrend since February last year, with both the daily and weekly share price firmly above the moving averages. On the daily chart, the price action has just staged another volatility breakout above the 21-day Bollinger Upper Band. The recent move has also confirmed the short term bullish flag chart pattern accompanied by rising momentum indicators.  Meanwhile, a short term support can be found at RM2.60, with the RM3.00 measurement objective in mind. 

On the weekly chart, Hup Seng has been exhibiting clear 2-month cycles within the upward regression channel. Now nearing a month into the current cycle, we reckon Hup Seng's upward move may have some distance to go. The MACD histogram is expanding, supported by an upward sloping MACD. Together with the rising RSI, the indicators imply an increase in the upward momentum and relative strength in the share price. Meanwhile, support is provided at  the previous resistance turned support level at RM2.68, and further down at RM2.45.

Source: Kenanga

No comments:

Post a Comment