A surge of volume was evident in IX Biopharma, Koh Brothers and Aoxin Q&M.
Of the three, IX Biopharma (33 cents) is the most overstretched after a break out that took place on April 20. 21-day RSI is up in the 70s. On the other hand, directional movement indicators have turned positive and quarterly momentum has turned up from neutral levels. This could support a further upmove with prices moving to a new high of 40 cents.
Koh Brothers’ (35 cents) directional movement indicators are generally neutral. ADX is at 25, and the DIs have just turned positive. 21-day RSI has turned up from neutral levels. This suggests that prices - which are at 35 cents, a level that coincides with a resistance - can attempt to break out. A successful breakout indicates an upside of 45 cents.
See also: Watch stocks attract interest, Oiltek is overbought, STI’s consolidation continues
Aoxin Q&M (currently at 20.5 cents) has been trading mainly in a sideways range this year. In mid-March the stock had a one-week rally. The sideways range resumed after the one-week rally, which brought indicators down to neutral levels. Since directional movement indicators are starting to turn positive from neutral positions, and 21-day RSI and quarterly momentum are turning up. Prices should also rally. Resistance/ breakout is at 27.2 cents.
The Straits Times Index rose a further 40 points week-on-week to end at 4,989 on Apr 10, giving rise to the likelihood of a break above 5,000. The STI managed to stay above its 50-day moving average, currently at 4,930, during the week of April 6-10. The main support is at the 100-day moving average at 4,792. ADX has fallen to 15, a reading that confirms a sideways consolidation. The consolidation phase has been in force since early February. During bull market phases, consolidations last around three months. It remains to be seen if the STI can move above 5,000 this month.
