SUPPORTLINE

TOMYPAK Holdings Bhd whose share price had come under pressure since Feb 26, is rebounding and looking to reclaim some lost ground. The stock took a positive turn last Friday on a spike in buying interest and extended those gains on Monday. Based on the daily price chart, the stock remains under the control of the bears. It is attempting to return from an oversold position, although it remains trading under both the long-term and short-term simple moving averages (SMA), suggesting the stock remains submerged under tremendous pressure and has several resistances to overcome before returning to an uptrend. At Monday’s session high of 85 sen, the stock remains below the 14 and 21-day SMAs, which sit at 86 and 89.5 sen respectively. Crossing these shortterm lines, the stock would face its first firm resistance at the 91 sen mark. The 50-day SMA lies yet further ahead at the 95.5 sen mark, which would represent a more bullish level of trading for the counter. However, at present, that target remains at a distance. The slow-stochastic momentum index has been bullish of late, rising to the overbought line at 80 points. The 14-day relative strength index has returned from under the oversold line and is now looking more bullish at 47 points. Meanwhile, the daily moving average convergence/divergence histogram remains in a negative posture, but appears to be aiming for a positive crossing with the trigger line. Should the current momentum lose steam, the stock needs an immediate support at 82 sen, a breach of which it may see it return to the recent session low of 75 sen set on March 2. Investor interest in the counter remained healthy on Monday, and a sustained level of buying will be required to change the landscape for the counter. The comments above do not represent a recommendation to buy or sell. Note: This article first appeared in StarBiz Premium yesterday.