Support line

Bonia Corp

BONIA Corp shares touched a four-year low of 54 sen on Aug 18 before rebounding to trade near the 60-sen level amid fresh bargain-hunting interest. Apparently, the stochastic and the 14-day relative strength index (RSI) are rising. Together with the moving average convergence/divergence (MACD) histogram recovering towards the zero threshold after flashing a buy recently, they offer hopes of more advances in the immediate term. Based on the daily chart, prices are poised to face significant resistance at the 65-sen mark. A clear breakout of the next upper hurdle of 75 sen will signal a bullish turnaround. On the opposite, a crack of the 50-sen line will see the lower floor of 43 sen becoming vulnerable.

Bumi Armada

BUMI Armada rose to a two-month high of 77.5 sen last Friday on renewed buying momentum before pausing to absorb profit-taking activity. According to the daily chart, prices had penetrated the short-term descending trendline, implying the recent consolidation process has ended and theoretically, the next move would be a new leg of uptrend. The return of the MACD histogram to the positive side added to investors’ optimism. A close above the 82.5-sen barrier will signal the continuation of a recovery process, en route to the 95.5-96 sen range. Support is pegged at the 67-sen floor.

CCK Consolidated

CCK Consolidated slipped into correction mode in the wake of renewed profit-taking selling after scaling a new record of RM1.14 on Aug 17. Technically, the MACD histogram retained the sell signal and the 14-day RSI sustained declines while the stochastic continued to flirt at the bearish territory. Given the frail reading, prices may be under tremendous pressure until fresh buying emerges. A slip below the short-term ascending trendline of 99 sen, followed by a clear breakdown from the 50-day simple moving average of 95 sen will have a negative impact on the outlook going forward.

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