Rising momentum is boding well for the ongoing rally, which would soon see the share price challenging the 200-day simple moving average (SMA) and testing the next resistance at RM5.21, which represents the stock's recent share price high. Should this level be breached, the stock would travel higher to RM5.31.

The 14- and 21-day SMA lines continue to rise, suggesting a positive near-term trend while looking at the technical indicators, there are also signs of an increasingly bullish outlook.

The slow-stochastic momentum index came close to triggering a “sell” signal when the percent K oscillator fell towards the percent D oscillator. However, the index remains healthy and pushing higher into overbought territory at 83 points.

The 14-day relative strength index has also returned to positive growth and has entered into overbought conditions at 72 points.

The daily moving average convergence/divergence line continues to indicate an uptrend as it rises away from the signal line. 

Given this evidence, the current share price rally remains intact although a successful breach of the 200-day SMA will help to confirm the longevity of the uptrend. In failing to cross the long-term moving average, the share price may take on a range-bound trading movement.

There is immediate support for the counter at RM4.80 in the event of consolidation. However, a reversal to a negative trend would see the stock retreat towards a firmer support at RM4.45.

The comments above do not represent a recommendation to buy or sell.