RECENT consolidation of blue-chip counters gave Second Board counters and lower liners on the Main Board a chance to move out of their recent doldrums.

The rotational plays on Second Board counters reflected the willingness of retail investors to take positions on these counters.

Apart from these counters, retail investors were gullible enough to pick up positions in PN4 counters. There was a marked increase in the trading volumes of many of these PN4 counters on both the Main Board and Second Board.

The speculative plays on Mesdaq counters — IE, Kotra, Palette, Scomal and Discomp — had attracted retail investors' attention. With that, speculative plays had spread to some of the Second Board counters.

Yesterday, Ingress Corporation Bhd (Ingress) displayed positive signs of attracting investors' attention. Its price trend gained seven sen to close at RM2.50 with 934,000 shares changing hands.

The Ingress Group is principally involved in automotive component manufacturing and engineering services comprising group product development, jigs, tools and dies design and fabrication using CAD/ CAM know-how, design and fabrication of test fixtures, production of sub-systems and industrial automation.

In addition, the group is also involved in power engineering and railway electrification (PER) that covers overhead transmission lines, substations, process and building automation, mechanical and electrical engineering services, manufacture and supply of panel-based electrical equipment and railway electrification works.

The railway electrification projects are undertaken by its associate, Balfour Beatty Rail Sdn Bhd. Some of the projects completed are the Keretapi Tanah Melayu double tracking project worth RM152 million and the overhead railway electrification and power supply maintenance valued at RM14.8 million.

Currently, the group is the sole domestic manufacturer of rollformed mouldings, weather-strips and door sash and one of the two manufacturers of door sash assemblies in the Asean region.

The group holds 100 per cent market share in co-extruded moulding (belt line, weatherstrip, roof drip) manufactured for both Proton and Perodua. Also, its door sash (frame) and door-in-white command 100 per cent of the market share.

Recently, the group flagged off its mass production lines at its 74 per cent owned subsidiary in Thailand, Ingress Autoventures Co Ltd. Its Rayong, Thailand production facilities produced bellows and engine gas return pipes for GM/Isuzu pick up trucks.

The group's manufacturing facilities are located in Nilai, Negri Sembilan; Bukit Beruntung, Selangor; and in Eastern Seaboard, Rayong, Thailand. It also has an office located in Shah Alam.

Chartwise, Ingress's daily price trend staged a decisive breakout of the neckline of its double bottom formation. It rallied past its neckline (RM2.05) on Dec 10, 2001 when its price trend closed at RM2.22.

Subsequently, its price trend rallied to its all-time historical high of RM2.47 on Jan 7. A pullback to its recent low of RM2.06 on Feb 25 provided the nice technical set-up for its current rally. Its price trend closed at RM2.50.

Here are the readings of some of its technical indicators:

Moving Averages: Ingress's price trend stayed firmly above its 10-, 20, 30-, 50-, 100- and 200-day moving averages.

Momentum Index: Its short-term momentum index trended on its gradual uptrend path, right above its neutral reference line.

On Balance Volume: Its shortterm OBV trend continued to stay above its 10-day exponential moving averages.

Relative Strength Index: Its 14day RSI staged a decisive breach of the double-bottom formation enroute to the 67.92 per cent level on March 25.

OUTLOOK:

Its dominance on the local front and current expansion into Thailand will continue to underpin its price trend.

Its bellows and engine gas return pipes produced by its Thailand plant will be fully taken up by GM/ Isuzu. In addition, another production line at the same facility will be flagged off sometime in November to cater for the new Honda City model.

With its inroad into car makers' market in Thailand, Ingress is likely to benefit from other world leading automakers in Thailand. Toyota, Nissan, Mitsubishi, Honda, GM/Isuzu and Ford/Mazda have established high volume production plants there.

Technically, Ingress' price trend rallied to another new all-time historical high yesterday when it closed at RM2.50. Its price trend is currently in a strong technical form. Coupled with it, its price trend had decisively taken out its previous high of RM2.47 on Jan 7.

Its daily fast MACD (moving average convergence divergence) continued to trend above its daily slow MACD right above its neutral reference line. Further, its 14-RSI stayed firmly above its 50 per cent level. This bodes well for the nearterm direction of its price trend.

Given the relatively firm uptrend displayed over the last few trading days, its price trend is likely to trend to even higher levels. Its pattern measuring objective is at the RM2.88-RM3.00 levels.