After a sharp decline from its peak (RM8.00), KSENG finally found its crucial support at RM6.00. The stock is heavily oversold as it currently stayed below all its short, mid and long-term SMA levels. Key momentum indicators showed that the bearish downward momentum is gradually waning and KSENG is poised to stage an oversold rebound from the current level. A bullish “Marubozu” candlestick has taken shape on the daily chart, signalling that the stock is likely to extend its gains in today’s trade. Should the rally turn out to be more than just a flash in the pan, KSENG could extend its upward move and retest the RM6.51 immediate overhead resistance over the next few days. On the flipside, traders should view any retracement of share price towards the RM6.00 support as an opportunity to buy on weakness.

 

Source: Kenanga