SUPPORTLINE By FONG MING YUAN

The Star Malaysia - StarBiz - - News -

DAYANG En­ter­prise Hold­ings Bhd, which halted its de­scent in re­cent trad­ing days, showed some pos­i­tive price ac­tion on Wed­nes­day. The stock bot­tomed out on Oct 30, which put a stop to the stock’s sharp de­cline over the month of Oc­to­ber. On Oct 1, the share price had hit a re­cent high of 87 sen be­fore plung­ing more than 40% over the course of the month to a low of 50 sen. The stock has been mov­ing in con­sol­i­da­tion mode over the first week of Novem­ber, but a re­cent turn in mo­men­tum may sug­gest it is time for in­vestors to take a breather from all the heavy sell­ing and con­sider cap­i­tal­is­ing on a re­bound. The mo­men­tum in­di­ca­tors sug­gest there may be an up­side bias in the days ahead given the rea- son­able lev­els of en­try. Fol­low­ing Wed­nes­day’s per­for­mance, the slow-sto­chas­tic mo­men­tum in­dex looked on the verge of giv­ing a “buy” sig­nal and rose to 39 points. The 14-day rel­a­tive strength in­dex also rose from the over­sold line to 36 points, which sug­gests grow­ing bullish­ness. The daily mov­ing av­er­age con­ver­gence/di­ver­gence line has met the sig­nal line and will need just an­other pos­i­tive per­for­mance to cross over and give a “buy” sig­nal. At present, the key sim­ple mov­ing av­er­ages are all ap­ply­ing neg­a­tive pres­sure on the stock, sug­gest­ing a strong bear­ish out­look. Nev­erth­less, some im­me­di­ate up­sides to take the share price above the short-term 14- and 21-day SMAs re­main likely. At Wed­nes­day’s in­tra-day high of 53.5 sen, the share price re­mains firmly in con­sol­i­da­tion mode. The im­me­di­ate re­sis­tance of 54.5 sen lies over­head. A con­vinc­ing breach of this hur­dle would see the stock tar­get a higher re­sis­tance of 58 sen. The sup­port at 50 sen has held the stock afloat over two ses­sions in re­cent days. It is close-by how­ever and a neg­a­tive trig­ger would take the stock lower to the 47 sen mark. 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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