SUPPORTLINE

AT Wednesday’s session high, Media Chinese International Ltd was battling the resistance at the uppermost 200-day simple moving average before descending lower to 40.5 sen at the close.

The stock has seen some big price swings in recent days although the uptrend that started on March 19 remains intact.

The counter had been facing negative pressure since Aug 16, 2016, where it peaked at 77.5 sen before beginning a protracted decline.

The stock returned to a low of 32 sen in early March before a sudden inflow of buying interest saw it rise past the SMAs into a bullish pattern.

This strong resurgence in share price was also faced with some volatility as profit-taking took root after the counter hit a peak of 50.5 sen on March 21.

Trading interest in the counter increased substantially and volume remains at their highest levels in recent years.

At Wednesday’s session high of 45.5 sen, the stock surpassed the 200-day SMA although continued buying interest would be needed to maintain that share price level.

Moving forward with more positive energy, the stock will attempt to scale the recent peak of 50.5 sen before approaching a further resistance of 54 sen.

The technical indicators maintain bullish on the stock. The slow-stochastic momentum index has crossed the 50-point mark to suggest growing strength. The 14-day relative strength index has dipped but remains healthy at 56 points.

Meanwhile, the daily moving average convergence/divergence histogram maintains its upwards trajectory to suggest a continued uptrend. The money flow index, however, is flirting with a negative crossing of the overbought line.

Should the counter descend further, it will find support at the 39 sen level. The next support will rest at 36 sen.

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

Note: This article first appeared in StarBiz Premium.