BINASAT Communications Bhd (code: 0195) is bouncing back strongly from historical lows as a surge of momentum allowed investors to capitalise from the oversold stock.

The slow-stochastic momentum index has risen swiftly to 77 points, but it remains healthy below the overbought line.The 14-day relative strength index also remains growing in the neutral area at 62 points.

Meanwhile, the daily moving average convergence/divergence line has curved sharply higher to challenge the signal line. The U-turn signals the end of the correction phase and the resumption of positive momentum, which would be confirmed by a positive crossing of the signal line.Trading volume in the counter remains strong, matching the levels in early September when there was a sell-off in the counter.

This indicates that investor attention remains on Binasat during this turnaround in the short-term trend.Over the near horizon, the stock’s immediate hurdle comes in the form of Friday’s closing price of 27 sen, which was briefly passed in intra-day trading.

A crossing of the resistance would see a potential challenge to the 50-day SMA and a rise towards the next resistance of 30.5 sen.Failure to convincingly breach 27 sen would see yet another short-term reversal with support at 22 sen. The historical low of 20 sen serves as next support.

The comments above do not represent a recommendation to buy or sell.
Read more at https://www.thestar.com.my/business/business-news/2019/09/14/eye-on-stock-binasat-communications#PmTkKObjWK6pWzdF.99