SUPPORTLINE

IGB Real Estate Management Trust moved higher on Tuesday on a resurgence of positive momentum following a brief period of consolidation. The stock rose 11 sen to an intra-day high of RM1.64 on positive news flow, breaking through several resistance levels before retracing to RM1.57 at market close. At the session high, the counter crossed the long-term 100- and 200day simple moving averages on the daily price chart. However, the pullback suggested there was a lack of conviction in the breakout and profit-taking was quick to follow. Buying interest in the stock on Tueday was also positive, suggesting there may be growing investor attention A positive push in the follow-up session could suggest a resumption of the rebound that started on April 19 when the stock’s downtrend bottomed out at RM1.46. At present, the stock rests near the 100-day SMA. A follow-up to the buying interest in future sessions will see a convincing breach of this immediate resistance, and ascension to the higher 200-day SMA target of RM1.63. The 50-day SMA sits near the RM1.53 mark, which serves as a stiff support for the counter, although descending further it may seek the round figure of RM1.50. The positive Tuesday performance was enough to change the trajectory of the technical indicators. While the slow-stochastic momentum index was headed for the oversold line, it has returned towards a crossing of 30 points. The 14-day relative strength index has also picked up momentum, moving past the 60-point mark. The daily moving average converge/ divergence line was headed for a negative crossing but remained afloat of the zero line and has crossed the trigger line for a buy signal.

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

Note: This article first appeared in StarBiz Premium yesterday.