Scientex Bhd is undergoing a consolidation after a rally took the stock into overbought levels of trading. The counter, however, remains on a bullish trend and could resume its upwards movement towards resistance of RM4.18, before embarking on higher resistance of RM5.
Looking at the technical indicators, the slow-stochastic remains in overbought conditions at 87 points, which could put a cap on gains as the index neutralises.
The 14-day relative strength index (RSI) is robust at 65 points while the daily moving average convergence/divergence (MACD) histogram is positive and showing signs of advancing.
Support is pegged to RM3.44 and RM3.19.
Source: The Star