SUPPORTLINE

TECHFAST Holdings Bhd has been reclaiming some lost ground following a rebound from a steep correction. The stock had experienced stellar increases to its share price in 2017, jumping nearly six times over the course of about 10 months to a peak of 87.5 sen in Oct 24, 2017. However, the subsequent retreat would prove nearly as remarkable as the stock lost about 70% of its value to a low of 26 sen by April 6, 2018. The current rebound has been staggered but there appears to be progress as the share price has inched its way towards the 38.2% Fibonacci retracement level. On Tuesday, the counter managed to pass the 49.5 sen level by hitting a ses- sion high of 50 sen. However, the resistance remains intact, short of a decisive penetration. A pick-up in buying interest would see the stock cut through the hurdle and head towards the 50% retracement level at 57 sen. Below that, the uppermost 200-day simple moving average at 53 sen may serve as a deterrant to the share price. Technical indicators show the rising trend to be intact. The slow-stochastic momentum index remains at a healthy 60 points with the potential to cross into a “buy” signal. The 14-day relative strength index sits at 70 points as it touches the overbought line. The daily moving average convergence/divergence line continues to pull away from the signal line in positive territory, suggesting the current trend is gaining in strength. To the downside, there is support at the 42-sen level although a slight distance away, the 23.6% Fibonacci resistance-turned-support sits at 40.5 sen. Short of a strong lead in the coming sessions, the stock may risk entering consolidation and be trapped between the 40.5 and 49.5 sen range. The comments above do not represent a recommendation to buy or sell. Note: This article first appeared in StarBiz Premium yesterday.