PTGTIN (2208) - Eye on stock: Petaling Tin
Saturday, 4 March 2017
Eye on stock: Petaling Tin
PETALING Tin Bhd (Ptg Tin; Code: 2208) dropped to a near four-year low of 19.5 sen on Aug 28, 2015 during the previous correction phase. Soon after finding a shelter, prices bounced off the ebb slightly to trade in a see-sawed pattern on bargain hunting interest alternated with continuous profit-taking selling, undergoing consolidation.
That period of consolidation lasted 18 months before a fresh bout of buying momentum emerged unexpectedly to propel this counter higher, which witnessed Ptg Tin shares hitting a peak of of 36.5 sen during intra-day session yesterday, the best level since Sept 24, 2013, but reversed trend to finish slightly easier. Never mind of the negative close yesterday.
Based on the daily chart, Ptg Tin has carved out a rather steep uptrend, with prices recovering back to within striking distance of the heavy resistance of 40-sen mark.
A successful penetration of this pretty stiff barrier will open the windows for more scaling going forward. The success rate of a breakthrough this time round is highly likely, as daily turnover is evidently building up and in favour of the bulls.
Elsewhere, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index were on the rise. It had triggered a short-term buy at the neutral area on Thursday.
Also on the upward momentum, the 14-day relative strength index improved moderately from a reading of 61 in late February to settle at the 83 points level yesterday. In addition, the daily moving average convergence/divergence histogram continued to expand upward against the daily signal line to keep the bullish note. It had issued a buy call late last year.
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Technically, indicators are painting an encouraging landscape, suggesting prices are likely to advance, with a great potential of making a major breakout of the 40-sen hurdle in the immediate term.
If successful, the next upside objective will be to challenge the 55-sen to 55.5 sen resistance band or the next upper speed bump of 75-sen mark. Initial support is pegged at the 21-day simple moving average of 29 sen. – K.M. Lee
The comments above do not represent a recommendation to buy or sell.
PTGTIN (2208) - Eye on stock: Petaling Tin
http://www.thestar.com.my/business/business-news/2017/03/04/eye-on-stock-petaling-tin/
