TANJUNG Offshore Bhd rebounded from the recent lows of RM1.21 on July 9 to a peak of RM1.45 on July 16 on renewed bargain-hunting interest before turning sideways on consolidation, lasting three weeks.
Thereafter, this oil and gas-related counter charged out of the upper horizontal line of the existing rectangular box in the wake of fresh buying momentum, which witnessed prices hitting a 1½-month high of RM1.51 during intra-day session yesterday before retreating owing to an apparent profit-taking activity to close at RM1.43, down three sen.
Based on the daily bar chart, another good day early next week would reaffirmed the breakout call and thereafter, it should open the doors for more advances.
As for the indicators, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index were on the rise. It triggered a short-term buy near the mid-range on Thursday.
Mirroring the uptrend, the 14-day relative strength index improved significantly from a reading of 49 on Monday to the 73 points level yesterday.
Also, the daily moving average convergence/divergence histogram resumed the upward expansion against the daily trigger line to stay bullish.
Technically, the promising reading suggests Tanjung Offshore may scale greater heights going forward. If prices can penetrate the initial resistance barrier of RM1.55, a re-test of RM1.72 level or the RM2 mark can be expected in the medium term.
Solid support is pegged at the RM1.33 mark. – By K.M. Lee
