After a 2.5-month rally, HSL’s share price appears to have lost momentum and had dropped about 30 sen from its recent high of RM2.06 in May. For yesterday, however, the share went up by 4 sen to close at RM1.84. A white “Marubozu” candlestick has been formed, indicating that strong buying pressure overcame the selling pressure. The key indicators (RSI, Stochastic and MACD) are hooking upwards heralding the start of an upcycle. We believe that with buying interest picking up, the share price could rally towards the immediate resistance level of RM1.90 (R1) and possibly RM1.95 (R2). A break above the strong resistance of RM1.95 would allow the overall trend to turn bullish.

 

 

Source: Kenanga