SUPPORTLINE by FONG MIN YUAN

OLYMPIA Industries Bhd made a move towards the 50-day simple moving average (SMA) at 12 sen on Tuesday, putting a halt to its staggered decline since January.

On Jan 10, the counter hit a recent high of 15 sen before resuming a downtrend. The stock had seen a death cross in November last year following a sustained pullback from a year’s high of 18 sen in September.

A brief respite in December and the first half of January saw the stock reclaim some lost ground but the reversal was short-lived.

The counter now faces some stiff resistance if it is to pull out of the bear- ish pattern on the daily price chart.

If it manages to breach the 50-day SMA on continued buying interest, the stock could move towards the uppermost 200-day SMA at 13 sen.

There has been some healthy developments in the technical indicators. The slow-stochastic momentum index has passed the 30-point mark, concomitant with the rise of the 14-day relative strength index, which has hit 70 points.

A further rise of the slow-stochastic towards the 50-point mark would help to reinforce the strength of the positive momentum.

Meanwhile, the money flow index has been snaking higher and sits at 74 points, beneath the overbought line.

The daily moving average convergence/divergence (MACD) histogram is also moving in a positive trajectory, crossing the trigger line and aiming for a breach of the zero line. Since February, however, the MACD has stayed below the neutral line, failing to confirm a sustained uptrend.

On the supporting end of the chart, the stock could retreat to its recent bottom of 11 sen. Falling through, further support is pegged to the low of 10.5 sen set in August 2017. The comments above do not represent a recommendation to buy or sell.