Supportline by FONG MIN YUAN

IOI Properties Group Bhd made a move past the 50-day simple moving average (SMA) on Wednesday, confirming a return to positive sentiment as the stock resumes its recovery.

The stock looks to have ended a downtrend between July and October and showed some bullish recovery in recent days.

Extending its advance on Wednesday, the stock hit an intra-day high of RM1.18, which represents the immediate resistance.

By the end of the trading day, the share price failed to breach the hurdle and closed at RM1.16.

The dominant trend on the daily price chart however remains bearish given the stock’s losses over the course of the year.

The long-term SMA lines can be seen exerting downward pressure on the share price.

A crucial resistance lies in the form of the RM1.22 mark, which hangs overhead near the 100-day SMA.

On the lower end of the chart, support for the share price can be seen at RM1.06, which represents Monday’s low point.

Lower still, next support is pegged to RM1.03, representing the stock’s recent low last seen at the start of November.

Things are looking brighter for the immediate term as the technical indicators turn more bullish.

The slow-stochastic momentum index has crossed into a “buy” position as the percent K oscillator crosses over the percent D oscillator.

At 52 points, the index is showing growing momentum.

This is reflected in the 14-day relative strength index, which has risen to 64 points and looks set to grow towards the overbought line.

Meanwhile, the daily moving average convergence/divergence line continues to rise higher above the signal line.

It remains in negative territory, but will signal a positive trend as it crosses above the zero line. The comments above do not represent a recommendation to buy or sell.

Note: This article first appeared in Starbiz Premium yesterday.