SUPPORTLINE By FONG MIN YUAN

AYS Ventures Bhd has been on a downtrend since it hit its all-time high of 66.5 sen on June 13 this year, but recent movements suggest it has resumed another leg of uptrend. On Tuesday, AYS jumped up from 50 sen to 53.5 sen, breaking through the declining trend line to challenge the uppermost 100-day simple moving average. Good buying volume on Wednesday further confirmed the breakout, as the stock paced higher to an intra-day high of 55 sen despite clos- ing 0.5 sen lower at 53 sen at the end of the trading day. The next immediate resistance of 60.5 sen seems within reach although the convincing breakout suggests there could enough momentum to push past even this level to reach the all-time high of 66.5 sen. The indicators paint a promising landscape with the slow stochastic momentum index moving higher to touch the overbought line . The daily moving average convergence/divergence histogram, which has been closely weaved to the signal line has finally given a clear Buy signal and moved past the neutral line into positive territory. The 14-day relative strength index shows there is strength behind the current uptrend although it has moved into overbought territory. The line has tapered, but remains healthy. Concrete support for the counter rests at the bottom-most 200day SMA at 48.5 sen. The SMA has remained intact throughout the short-term chart pattern.

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

Note: This article first appeared on StarBiz Premium yesterday.