The Star Malaysia - StarBiz - - News - By FONG MIN YUAN

INSAS has been in cor­rec­tion mode since hit­ting its re­cent peak of RM1.14 in July, the best level in three years. The short-term de­scend­ing trend line shows sev­eral at­tempts to break out of the down­trend when prices were in the down­ward ad­just­ment process, but with no suc­cess. On Nov 14 the counter fell through the bot­tom-most 200-day sim­ple mov­ing av­er­age (SMA), re­sult­ing in neg­a­tive cross­ings by the 14- and 21day SMAs. But in the wake of an ap­par­ent bout of fresh bar­gain hunt­ing in­ter­est, the share price is now at­tempt­ing to re­turn above the 200-day SMA on a tech­ni­cal re­bound. A break­out of the cur­rent bear­ish trend will re­quire the stock to rise above the 200-day SMA at the 96.5sen level and push on past the de­scend­ing trend line at 98 sen. If the counter fails to charge out and re­turns to a neg­a­tive tra­jec­tory, the fall of the SMA lines will ac­cel­er­ate, com­plet­ing the dead cross­ings and putting the counter un­der tremen­dous pres­sure. Look­ing at the tech­ni­cals, the daily mov­ing av­er­age con­ver­gence/di­ver­gence his­togram is on the brink of giv­ing a “buy” sig­nal and per­haps rise out of the bear­ish area of the chart, while the slow-sto­chas­tic mo­men­tum in­dex is push­ing higher.

The 14-day rel­a­tive strength in­dex shows some pick-up in the re­bound.

Look­ing less op­ti­mistic, how­ever, is trad­ing vol­ume, which re­mains sub­dued at this point. Un­less the present re­bound can at­tract fol­low-through buy­ing, there will be in­suf­fi­cient in­ter­est and mo­men­tum to trig­ger a bullish break­out.

Im­me­di­ate sup­port for the stock is pegged at the 90-sen level, while more con­crete sup­port lies at the 76sen level.

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

Note: This ar­ti­cle first ap­peared in StarBiz Pre­mium yes­ter­day.

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