Monday, July 29, 2013

Gtronic set to move towards overhead resistance zone

Globetronics Technology Bhd (Gtronic) staged a technical rebound last week. Its daily price trend rebounded to close at RM2.59, giving a week-on-week gain of 17 sen, or 7.02 per cent.

Following are the readings of some of its technical indicators:

* Moving Averages: Gtronic's daily price trend had since stayed above all its 10-, 20-, 30-, 50-, 100- and 200-day moving averages.

* Momentum Index: Its short-term momentum index stayed above the support of its neutral reference line.

* On Balance Volume (OBV): Its short-term OBV stayed above the support of its 10-day moving averages.

* Relative Strength Index (RSI): Its 14-day RSI had since stayed above the 50 level. Its technical reading stood at the 76.53 per cent level at the market close last Friday.


Last week, the FBM KLCI's 30 components continued to provide critical support in maintaining the market equilibrium. It showed that heavyweight index-linked components had once again played pivotal roles in last week's marginal gain of 9.87 points, or 0.55 per cent.

Selective second and third liners remained firm during the week. Gtronic is one of these counters with a week-on-week gain of 17 sen, or 7.02 per cent.

Chartwise, Gtronic's monthly price trend staged a technical breakout of the neckline of its intermediate-term rounding-bottom pattern formation last week.

Its weekly price trend staged an overhead breakout of the neckline (See weekly price chart - B1:B2) of its intermediate-term rounding-bottom pattern formation. Also, its weekly price trend continued to stay decisively above the support of its resistance-turned-support trendline (B1:B2).

Gtronic's daily price trend staged a successful overhead breakout of its short-term overhead resistance (See daily price trend - C1:C2) last week.

Its daily, weekly and monthly fast MACDs (moving average convergence divergence) continued to stay above their respective slow MACDs at the market close last Friday. With that, it augurs well for its near-term perspectives.

Its 14-day Relative Strength Index (RSI) stood at the 76.53 per cent level last Friday. Its 14-week and 14-month RSI were at the 81.01 and 80.68 per cent levels respectively.

Following the successful breakout of its intermediate-term overhead resistances (weekly chart - B1:B2 ) and (daily chart - C1:C2) on its weekly and daily price charts respectively, Gtronic's price trend is now poised to move towards its immediate overhead resistance zone (RM2.65-RM2.90 levels).

The subject expressed above is based purely on technical analysis and opinions of the writer. It is not a solicitation to buy or sell.

Publish date: 29/07/13

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