Yesterday, ALAM’s share price rose 5.0 sen (+4.76%) to settle at RM1.10. For the past 3 months, ALAM has been trading in a downtrend. The MACD indicator had show signs of recovery from its recent downtrend, painting a potential reversal picture on this stock. Both key indicators RSI and Stochastics have been deeply oversold for the past 1 month, while now they are emerging away from their oversold situation, indicating that buying interests is picking up. We reckon that this could be a strong entry point for investors and should the buying interests persists, we expect the share price to retest its strong resistance level of RM1.24 (20-Day SMA) in the near term.

 

 

Source: Kenanga