SUPPORTLINE by FONG MIN YUAN

THE short-term uptrend in Unisem (M) Bhd remains intact as it appears to be once again moving ahead on the daily price chart on positive momentum. The counter, which had been on a descent between August 2017 had finally hit bottom in May this year at a low of RM1.60. The upswing hit a resistance of RM2.79 in July, resulting in a pullback and brief consolidation. At this point, the 50-day simple moving average (SMA) moved ahead of the 100-day SMA, suggesting a growing bullishness as the negative cross- ings on the price chart had begun to unwind. On Monday, the stock help to confirm a resumption of the uptrend with a second straight day of gains. The share price hit a session high of RM2.74, within striking distance of a positive breakout. The immediate resistance at RM2.79 remains intact but should the current momentum continue to grow, the stock will attempt a positive crossing to approach the 200-day SMA line at RM2.86. Failure to maintain the positive momentum would see the stock subside into consolidation mode, hitting the immediate support at RM2.60 and with further support at RM2.48. The technical indicators remain healthy with the slow-stochastic momentum index at 73 points while he 14-day relative strength index sits at 63 points and growing. The daily moving average convergence/divergence line remains above the zero line and is curving upwards towards the signal line. A positive crossing would signal the resumption of the positive trend.

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

Note: This article first appeared in StarBiz Premium yesterday.