SupportLine

Gas Malaysia

GAS Malaysia has been on a downtrend since May this year and hit its recent low of RM2.74 last Thursday. Over the last two trading days, it has rebounded to rise above the 14- and 21-day simple moving averages (SMA) and is headed for the uppermost 200-day SMA at the RM2.91 level. A bullish breakout will occur if the counter crosses the shortterm trend line at RM2.94, en route to challenge the stiff RM3.15 barrier. The stochastic and daily moving average convergence/divergence (MACD) gave ‘buy’ signals last Thursday while the 14day relative strength index (RSI) shows strong momentum in this latest upwards movement. Supports rests at the recent low of RM2.74, of which a crack will signal the continuation of a downtrend.

Malaoff Corp

MALAKOFF may have hit its all-timelow of 99.5 sen and is likely to use that floor to muster a strong rebound. Having come a long way down since its recent peak of RM1.80 in August 2016, the counter has to rise above strong resistance posed by the 50- and 100-day SMA lines at the RM1.05 mark. A successful penetration of the 200-day SMA at RM1.13 will signal a bullish turnaround. Technically, the stochastic bounced off the oversold area last Friday and is now headed in a northerly direction. Any violation of the historical ebb of 99.5 sen will see prices setting a new low.

M-Mode

M-MODE has been on a strong rebound following a period of consolidation from May to October. The counter pushed to its recent peak of 42 sen on Oct 31. This counter has hovered near the fast-rising 14-day SMA in recent days but a clear push upwards could see it rise to a strong resistance at 47.5 sen. The indicators look good, with the daily MACD histogram on the verge of a ‘buy’ signal. The stochastic is rising towards the bullish territory while the 14-day RSI has also touched the upper regions of the chart. A slip below the immediate support of 36 sen may drag prices down to the 30 sen psychological level. The comments above do not represent a recommendation to buy or sell.