SUPPORTLINE by FONG MIN YUAN

FOUNDPAC Group, which has been on a staggered ascent since the start of June, is moving at a gradual pace towards 41.5 sen. At yesterday’s trading high of 38.5 sen, the share price is not far off from its immediate goal. The stock lost some momentum in August when it began trading sideways in a period of indecision. Over the course of the last three trading days, it appeared that the share price had slipped under the short-term ascending trend line. However, the positive momentum continues to grow and the stock has moved ahead of the upper- most 200-day simple moving average (SMA). At current trading levels, the stock is also above the 38.2% Fibonacci retracement level, based on the descent it made between end-September 2017 and April 2018. Coupled with reasonably healthy technical indicators, there is reason to believe that this stock will continue on its way towards 41.5 sen before hitting a hurdle. The slow-stochastic momentum index has returned to a growing trajectory at 38 points, and crossed into a “buy” signal. The 14-day relative strength index is also healthy at 62 points. Meanwhile the daily moving average convergence/divergence (MACD) line is currently resting below the signal line in positive territory. A nudge higher in share price would push the MACD into a “buy” signal and help to confirm the resumption of a rally. Passing the obstacle at 41.5 sen, the stock will have some room to grow before hitting the next resistance at 47 sen. The share price is seeing some strong support at the 36.5 sen level where the 200-day and 14-day SMAs are currently resting. Further support rests at the 35 sen mark while the 50-day SMA is also rising to offer further support at the 31.5 sen level. The comments above do not represent a recommendation to buy or sell.