SUPPORTLINE
PANTECH Group Holdings Bhd continued its rise on Monday and broke above the uppermost 200-day simple moving average (SMA), suggesting growing bullishness in the stock. The counter has been on a rebound since it hit bottom at 51 sen on April 6. The share price experienced volatility on Monday and traded in a wide intra-day range. However, by Tuesday, the uptrend resumed with renewed vigour with consecutive gains experienced in intra-day trading. While the price chart sees negative crossings between key SMAs, Monday’s bullish share price crossing helped to confirm a sustained uptrend, with the stock aiming for a return to levels not seen since January this year. The stock will encounter resistance at the 67.5-sen level, but pushing through will target a recent peak of 70.5 sen before aiming for an Oct 23, 2017, high of 74 sen. In the event of a pullback, the stock sees immediate support in the form of the 100-day SMA at 60 sen. Moving lower down the chart, the next support is pegged to the 57 to 58-sen range, where the short-term SMAs have converged. A breach of this lower support will increase the risk of the stock declining to 52.5 sen. Looking at the technical indicators, the slow-stochastic momentum index has spiked up from the oversold line over the five trading sessions to 79 points, reflecting the resumption of momentum. Concomitantly, the 14-day relative strength index showed this sharp growth in momentum to 79 points. The daily moving average convergence/divergence line is showing bullish developments, rising higher in positive territory. Meanwhile, the money flow index has risen to the overbought area at 91 points but remains healthy. The comments above do not represent a recommendation to buy or sell.