Support line K.M. LEE
CONTINUOUS selling dragged Marine & General shares to a near five-year low of 25.5 sen on Tuesday before showing signs of stabilising in the wake of mild bargain-hunting interest. Technically, the stochastic and the 14-day relative strength index were signalling oversold condition. With the moving average convergence/divergence histogram improving, they offer a ray of hope – a relief rebound in the short term. Resistance can be expected at the 32-sen barrier, followed closely by the 35-sen level. Initial support is pegged at the 25-sen line, of which a crack is likely to see the lower support floor of 20 sen and the 15 sen-16 sen band becoming vulnerable.
A FUTILE attempt to recover in April triggered fresh selling pressure in Salcon, dragging the shares to a low of 41.5 sen during intra-day session yesterday, the worst since March 2013. Except for the stochastic showing a tentative curving up sign from the very oversold area, the 14-day relative strength index sustained the downward pressure and the moving average convergence/divergence histogram in great danger of resuming the downward momentum, suggesting range-bound session the best in the immediate term until clarity returns. A slip below the 36-sen floor may pull prices down to the 30-sen level. To the upside, resistance is anticipated at 47 sen and again, at 50 sen. The upper strong barrier is resting at the 56-sen area.
WTK Holdings touched a low of 78.5 sen during intra-day session, the worst since April 2009 amid persistent liquidation. Though the stochastic and the 14-day relative strength index had reached the oversold area, they show no sign of turning around just yet. On the back of the frail technical reading, prices risk skidding lower, unless renewed buying interest emerges quickly. Based on the daily chart, a breakdown from the fairly concrete floor of 70 sen may send the shares down to the 60-sen mark. Current resistance is pegged at the 21-day simple moving average (SMA) of 83.5 sen and a clear penetration of the uppermost 200day SMA of 96 sen will see the fortunes of this stock turning brighter.