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The Star Malaysia - StarBiz - - News - by FONG MIN YUAN

LON­DON Bis­cuits Bhd has been trapped by the up­per­most 200-day sim­ple mov­ing av­er­age (SMA) over the two weeks as the rally slipped into con­sol­i­da­tion mode. De­spite breach­ing the SMA line over the course of this time, the share price re­turned un­der on a lack of fol­low-through buy­ing in­ter­est. Nev­er­the­less, the up­trend re­mains in­tact on the short-term daily price chart, and con­di­tions have im­proved since early May when the stock started pick­ing up gains. There is a long-term bear­ish for­ma­tion from the nega­tive cross­ings of the SMAs, but this may be grad­u­ally un­wind­ing as the short-term SMA are on track to push past the 200-day SMA. On Tues­day, the stock rose past the 200-day SMA once again to tar­get the re­sis­tance of 61 sen. A pos­i­tive cross­ing of this hur­dle would see the counter re­sume its rally and a pos­si­ble as­cent to­wards a higher tar­get of 67 sen. To the lower end of the chart, the 57 sen mark serves as the im­me­di­ate sup­port. The 50-day SMA at 54 sen serves as a more cru­cial sup­port. If it falls through, the stock would re­turn to a more bear­ish out­look. In­vestor in­ter­est in the stock has been el­e­vated in Au­gust and con­tin­ues to be high. The tech­ni­cal in­di­ca­tors are also mov­ing high- er with the slow-sto­chas­tic mo­men­tum in­dex at 56 points. The 14-day rel­a­tive strength in­dex is on an up­wards tra­jec­tory and is push­ing ahead at 58 points. The daily mov­ing av­er­age con­ver­gence/di­ver­gence line re­mains at a nega­tive po­si­tion to the sig­nal line but is above the neu­tral line, sug­gest­ing that the up­trend re­mains in­tact.

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

Note: This ar­ti­cle first ap­peared in StarBiz Pre­mium yes­ter­day.

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