SUPPORTLINE by FONG MIN YUAN

The Star Malaysia - StarBiz - - News -

BERJAYA Sports Toto Bhd saw con­tin­ued ad­vance in share price on Mon­day, fol­low­ing Fri­day’s jump on pos­i­tive news. The pres­ence of a ‘death cross’ since early Oc­to­ber due to the neg­a­tive cross­ings of the 50-day and 100-day SMAs of­fer a long-term neg­a­tive out­look on the share price. The stock has been on a de­cline since fall­ing off a peak of RM2.62 on June 10. While there was one prior at­tempt to re­verse the down­trend in Septem­ber, the re­cov­ery was brief, re­sult­ing in a sub­se­quent pull­back to a bot­tom of RM2.01 on Oct 24. Mon­day’s push to an in­tra-day high of RM2.28 helps to con­firm that the re­bound has taken root. The mo­men­tum in­di­ca­tors are look­ing pos­i­tive, sug­gest­ing that this ad­vance has legs. The slow-sto­chas­tic mo­men­tum in­dex, how­ever, has taken a de­scend­ing an­gle at 70 points, sug­gest­ing slow­ing strength. The 14-day rel­a­tive strength in­dex has breached the over­bought line at 73 points but re­mains in a pos­i­tive tra­jec­tory. The daily mov­ing av­er­age con­ver­gence/di­ver­gence line is also ris­ing off the sig­nal line af­ter is­su­ing a ‘buy’ sig­nal. The re­cov­ery may see the share price cross the long-term 100- and 200-day SMAs to ap­proach the tar­get of RM2.33. This would serve as an op­por­tu­nity for in­vestors to take a breather from the ad­vance, but if buy­ing in­ter­est should re­sume, the next tar­get could lie at the the Septem­ber high of RM2.38. The stock sees lower sup­port at RM2.13 with fur­ther sup­port rest­ing at RM2.06.

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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