Shin Yang Shipping

TheStar Tue, May 07, 2019 08:00am - 2 years ago


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SHIN Yang Shipping Corp Bhd made a jump past key moving averages in Monday trade in the latest sign of an improving outlook.

The stock had ended a correction at 28 sen last Thursday and started to retrace some of the losses seen over March and April.

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On Monday, the stock put in a third day of gains, gapping up at the opening bell to advance bullishly past the 50- and 200-day simple moving averages (SMA).

The two SMA lines are currently intertwined with the 50-day SMA just slightly crossing the longer-term moving average to indicate a return to a bullish outlook.

However, given the strong one-day jump, it remains to be seen if profit-taking will follow or if the current rally can be sustained.

Bullish evidence can be found in the technical indicators, which have showed considerable increases in momentum.

The slow-stochastic momentum index has hit the upper limit of 100 points, but barring any U-turn, can remain in extended overbought mode.

The 14-day relative strength index is also rising in overbought conditions at 72 points, with further advances indicative of momentum growth.

The daily moving average convergence/divergence line rests atop the signal line. Further advances will be necessary to give the MACD a more convincing crossing and issue a \"buy\" signal.

An immediate share price target can be seen at 32.5 sen, which will see the stock return to April 1 trading levels. However, should the rally continue, higher resistance can be found at 34.5 sen, which represent the recent peak achieved on March 17.

While the convergence of 50- and 200-day SMA lines at 30.5 sen offers support for the share price, a stiffer support rests at 29.5 sen, ner the 21-day SMA.

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

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