KUALA LUMPUR (Feb 27): AllianceDBS Research said the immediate hurdle for TH Heavy Engineering Bhd (THHeavy) was at 17 sen and that THHeavy had on Feb 24 traded lower to 14 sen before closing at 14.5 sen (down 1 sen or 6.45%).

In its evening edition last Friday, the research house said THHeavy fell below the 50-day moving average line on Feb 24 after spending 3 days between the 20-day and 50-day MA lines.

“Following the down close on Feb 24, the stock is likely to move lower again with immediate support at 14 sen.

“A fall below 14 sen should see further price decline to the subsequent support zone, 11 sen – 12.5 sen.

“The hurdle is pegged at 17 sen. A rise above 17 sen would lift the stock to the next resistance, 20 sen – 21 sen,” it said.

AllianceDBS Research said stock volume traded on Feb 24 was 6.15 million shares compared to the 3-month average volume of 6.90 million shares.

The research house said that indicators wise, the MACD was below the 9-day moving average line with the sell signal remains intact.

It said the relative strength index indicated that the stock was currently in an oversold zone.