SUPPORTLINE by FONG MIN YUAN

COMFORT Gloves Bhd has been moving in consolidation mode for the better part of this month although there are indications of a continuation of the rally it saw in August. On rising momentum, the counter could well surpass this level once again and reach the next stronger resistance at RM1.14. The improving longer-term outlook of the counter is lending evidence that the counter could again approach the trading level of end-2017. With the 50-day simple moving average (SMA) fast approaching the 200-day SMA, a positive crossing would see the bulls resume control on the daily price chart outlook. The momentum indicators are also looking positive. The slow-stochastic momentum index is rising towards the neutral level at 41 points. The 14-day relative strength index also shows a healthy level of momentum at 50 points. The daily moving average convergence/divergence line remains uncommitted but is one positive performance away from crossing into a “buy” signal. The counter’s trading volume remains at low levels relative to the trading interest during the start of the rally in early August. A pick-up in buying interest would escalate the bullish bias seen in the current price trend. On the lower end of the chart, the stock finds immediate support at the RM1 mark. While this level has held up during this brief consolidation period, a turn towards heavy selling pressure would see the share price return to a lower, stiffer support at 92 sen.

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

Note: This article first appeared in StarBiz Premium yesterday.