SUPPORTLINE by FONGMINYUAN

MEDIA Prima Bhd is breaking out of the short-term descending trendline and moving to greener pastures. Having found its historical bottom at 58 sen on Dec 12, the counter has since seen a resurgence of the bulls. Despite the gains seen over the technical rebound in the past month, the counter, however, remained under pressure. It is Monday’s performance, which took the stock to an intra-day high of 81 sen, that finally saw it breaking out of its short-term bearish pattern. However, the counter closed under the trend line at the end of the day’s trading session, which suggests that it hasn’t confirmed a breach of the resistance. Breaking free of the hurdle, the counter will move towards its recent peak of 90 sen, which was set in the first week of September. A further resistance can be found at the 93.5 sen mark, which would see the counter cross over the uppermost 200-day simple moving average. The technical indicators have also showed to be resilient and returned to a bullish posture despite pulling back from an overbought position in the closing days of December. The slow-stochastic momentum index issued a “buy” signal on Monday following a brief neutralisation of the overbought condition. It has returned to an upwards trajectory, in tandem with the 14-day relative strength index. The daily moving average convergence/divergence histogram continues to show a strong bullish bias in positive territory. This current leg of uptrend looks set to continue so long as the buying interest continues to grow. But should it lag, it will find support at the 72 sen mark. A further descent will take it to the 65.5 sen level and, finally, to the all-time low of 58 sen. The comments above do not represent a recommendation to buy or sell. Note: This article first appeared in StarBiz Premium yesterday.