Wah Seong Corporation
Wah Seong, as cited in RHB Retail Research’s technical analysis (Dec 9), is set to reclaim its 3-month high, as it bounced off the 21-day average line and pushed past the immediate resistance point of MYR0.635 yesterday, on strong trading volume. The bullish bias above that level may push the stock higher towards MYR0.69 or 8 Sep’s high. The next resistance is at MYR0.735, or 25 May’s high. Conversely, the stock may reverse direction towards the average line if it falls below the MYR0.595 support, forming a “lower low” bearish structure beneath the average line.
This counter is in the midst of consolidating sideways between MYR0.695 and MYR0.74 amid the uptrend reversal posture above the 21-day average line. If the stock rebounds and breaches the resistance of MYR0.74, the bullish momentum may accelerate to propel the stock northwards towards the MYR0.80 mark. This is then followed by the next resistance of MYR0.885, or 28 Sep’s high. The momentum may be reversed if it drops below MYR0.695 – forming a “lower low” bearish pattern, below the average line.