Supportline

SIME Darby Property Bhd saw a return of bullish momentum on Wednesday amid a surge in trading volume. The stock, which has been trading in a consolidation channel over the past two weeks, is seeing some upward price movements towards the upper resistance. On Wednesday, the share price gapped up at the opening bell and ended on a positive note as buying interest returned to the share. The technical indicators gave bullish signals, including the slow-stochastic momentum index, which turned higher from oversold conditions. The per cent K oscillator crossed above the oversold line and cut higher than the per cent D oscillator, indicating a “buy” signal. The 14-day relative strength index also turned higher from a negative trajectory to rise past the centre line to 56 points. Meanwhile, the daily moving average convergence/divergence line managed to stay afloat in positive territory ahead of the signal line, suggesting that a positive trend remains intact on the price chart. At Wednesday’s session high, the share price crossed above the 50-day simple moving average (SMA), which would indicate a return of bullish sentiment. However, it would take sustained buying interest before the counter is able to break from the overhead resistance of 85.5 sen. A further obstacle lies in the form of the 100-day SMA, which is hovering nearby. A positive crossing of the moving average would signal the sustainability of the rally. On the lower end of the price chart, support for the stock is pegged at 76.5 sen, the lower end of the consolidation channel. The next support rests at 70.5 sen, which represents the stock’s recent low.

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Note: This article first appeared in Starbiz Premium yesterday.