Humeind has a bullish breakout

Hume Industries (M) Bhd ('Humeind') has a breakout to the upside at RM4.00 today. Yesterday, the stock gained 20 sen to close at RM3.94, on a substantially higher volume of 1,088,900 units traded. Today, it gained 28 sen to close at its daily high of RM4.22, on a volume of 1,542,900 units traded.

From the daily chart below (Chart 1), we can see that Humeind share price is moving in a short-term uptrend line, with support at RM3.50/54.


Chart 1: Humeind's daily chart as at April 16 (including price gain for April 17)

With this bullish breakout, Humeind may test its immediate horizontal resistance of RM4.50 and, if it can surpass that level, it may test the following horizontal resistance of RM5.00.


Chart 2: Humeind's weekly chart as at April 16

After 2 days of sharp price run-up, it would not be prudent to charge into this stock immediately. If the price were to weaken over the next day or two, Humeind could be a good buy at RM4.00/10.

This is strictly a technical call without any consideration of the company's financial performance.