SupportLine: IFCA MSC, UEM Sunrise, Ekovest

TheStar Fri, Nov 06, 2020 08:40am - 3 months ago

IFCA MSC Bhd gapped up yesterday to indicate that its retracement has picked up speed.

At the closing price, the stock challenged the 50-day simple moving average (SMA), a crossing of which would take it to its recent high point of 40.5 sen.

Beyond that, the stock could pace higher towards 45 sen.

The growth momentum is looking positive with the slow-stochastic approaching 60 points and the 14-day relative strength index (RSI) rising to 65 points.

Further gains would confirm a bullish call on the moving average convergence/divergence line, which is currently resting on the signal line.

Support for the stock is pegged to 35 sen and 32 sen.

UEM Sunrise Bhd spiked up yesterday to cross the 100-day SMA in a sign of bullish sentiment.

While it continued to face descending pressure from the overhead 200-day SMA, the stock could continue on its bullish trajectory for the time being.

A crossing of the moving average would indicate a return to a bullish outlook with initial resistance seen at 47.5 sen and next resistance at 52 sen.

The slow-stochastic has crossed the mid-line at 55 points while the RSI has slipped into overbought conditions at 72 points. Nevertheless, the stock is expected to enter extended overbought conditions before neutralising.

Support for the stock is found at 36 sen and 34.5 sen.

Ekovest Bhd made a strong rebound yesterday but fell short of crossing above the uppermost 200-day SMA.

Given that the hurdle remains intact, the share could face profit-taking pressure over the coming days unless the current positive momentum continues to grow.

The technical indicators have spiked higher to suggest buying momentum with the slow-stochastic and the RSI approaching 70 points.

A crossing of 54.5 sen would mark an escape from the sideways channel and a possible advance towards 57 sen.

On the lower end, support is found at 48 sen and 45.5 sen.

The comments above do not represent a recommendation to buy or sell.

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UEMS 0.410


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