SUPPORTLINE by FONG MIN YUAN

KOMARKCORP Bhd gapped up on Tuesday to a session high of 19.5 sen and crossed the 50-day simple moving average (SMA) to suggest mounting bullishness in its share price. The stock had been experiencing negative pressure of late, falling from a recent peak of 24.5 sen on March 15 to bottom out at 15 sen last Thursday. Following that decline, the stock underwent a rebound, and based on the share price performance over the last two sessions, it seems to be taking hold. With growing positive momentum, the counter experienced a strong push higher on the daily price chart on Monday when it rose to challenge the lowermost 14-day SMA. Tuesday’s continued buying interest suggested a sus- tained uptrend moving forward. At Tuesday’s intra-day high, the stock met the 200-day SMA and was just short of breaching the uppermost 100day SMA at 19.5 sen. Upon crossing this hurdle, it could rise further on positive buying interest towards its next resistance at 21 sen, where it would close a downside gap left behind on March 23. The technical indicators show a significant uptick on positive momentum. The slow-stochastic momentum index has crossed into overbought levels at 88 points, but can move higher to more extreme overbought levels before attempting to neutralise. Meanwhile, the 14-day relative strength index is moving healthily above 60 points. The daily moving average convergence/divergence line is making a positive crossing of the signal line and is making an approach of the zero line for a bullish signal. Should the buying interest fade and the uptrend stall, the stock could enter consolidation mode, trending lower towards closing the upside gap at the 18.5 sen mark. A more significant decline could see the counter approach the next support at 16.5 sen. The comments above do not represent a recommendation to buy or sell. Note: This article first appeared in StarBiz Premium yesterday.