HUMEIND was up by 20.0 sen (5.0%) to RM4.20 yesterday on the back of a spike in trading volume. Chart-wise, the share price had gapped up to settle between its 20-day and 50-day SMA levels. Key indicators are also bullish as the MACD has crossed over the Signal line and starting to form a bullish divergence. RSI indicator continued to be in a healthy state - hooking upwards. However, we view that the share price could take a temporary breather in the near term, underpinned by the overbought situation shown on the Stochastic indicator. With follow through buying support after the pit-stop, we expect the share price to retest the (R1) RM4.32 level following the positive momentum, and possibly to (R2) RM4.45 next.

 

 

Source: Kenanga