SUPPORTLINE by FONG MIN YUAN

The Star Malaysia - StarBiz - - News -

INARI Amertron Bhd ex­tended its re­bound on Mon­day to an in­tra-day high of RM1.88. The stock had be­gun its re­bound off a low of RM1.60 on Nov 28 af­ter a de­cline over the month shaved 39% off its share price. Since then, the daily price chart has showed the share price climb­ing past the short-term sim­ple mov­ing av­er­ages (SMA). As at Mon­day’s high, the stock had crossed the short-term de­scend­ing trend line at the RM1.86 mark, would rep­re­sents a breach of the re­sis­tance and sig­nal that the share price re­trace­ment is set to con­tinue. Con­tin­ued buy­ing in­ter­est over the com­ing ses­sions would see the con­tinu- ation of the ad­vance although profit-tak­ing may tem­po­rar­ily bring the share price back be­low the trend line. The tech­ni­cal in­di­ca­tors sug­gest bullish­ness, prompt­ing a con­tin­u­a­tion of rally over the near term. The slow-sto­chas­tic mo­men­tum in­dex has risen sharply to 71 points, in­di­cat­ing bullish mo­men­tum and more room to grow over the im­me­di­ate term. The 14-day rel­a­tive strength in­dex is also bullish at 63 points and re­mains north­bound. The daily mov­ing av­er­age con­ver­gence/di­ver­gence line has crossed the sig­nal to sug­gest a ‘buy’ call and the re­sump­tion of a pos­i­tive trend. Con­tin­ued ad­vances in the share price will take the counter to­wards the 50-day SMA at the RM2.02 mark. An ap­proach of RM2.02 will also sig­nal a 50% re­trace­ment of value lost dur­ing its Novem­ber cor­rec­tion, fur­ther lend­ing con­fir­ma­tion of a re­turn to bullish­ness. A hur­dle of RM2.05 lies just above the 50-day SMA, serv­ing as the tar­get at this stage of the rally. On the lower end of the chart, sup­ports rests at RM1.60 with fur­ther sup­port found at RM1.50. The com­ments above do not rep­re­sent a rec­om­men­da­tion to buy or sell.

Note: This ar­ti­cle first ap­peared in StarBiz Pre­mium yes­ter­day.

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.