Speaking from a technical analysis perspective, this counter is set to rebound further, as it reclaimed the area above the 21-day average line yesterday while surpassing the immediate resistance of MYR0.425 – coupled with high trading volume. If it manages to stay above that level, the stock may travel towards 7 June’s high of MYR0.485, followed by MYR0.51 (the high of 9 Jun). However, the stock may reverse direction if it falls below the MYR0.38 support – forming a “lower low” bearish pattern beneath the average line.
Kelington, according to RHB Research’s technical analysis, is attempting to stage a rebound as it bounced off strongly from the support while moving towards the immediate resistance of MYR1.18 yesterday. If it breaches above that level – which is also above the 21-day average line – the stock may climb further towards the MYR1.25 mark or 8 June’s high, followed by MYR1.30. If it falls below the support level of MYR1.10, the stock may trend downwards, forming a “lower low” bearish pattern below the average line.