Support Line

Alam Maritim Resources shares fell to a new all-time low of 34 sen on Jan 21 before turning range-bound in the wake of light bargain hunting interest. Apparently, the stochastic momentum index and the 14-day relative strength index are ticking up. Together with the moving average convergence/divergence histogram showing signs of healing, they suggest that prices may have finally found the floor. Resistance can be expected at the 41 sen barrier, followed by the 100-day simple moving average of 45 sen. A clear penetration of the 50 sen mark would see the fate of this stock changing better.

FRASER & Neave Holdings rose to a high of RM20.04 in early session, the best since late August 2012, before reversing to close a shade lower at RM19.58, absorbing profit-taking selling. Technically, the bulls are poised to pause for a breather due to overbought reason, but investors can consider accumulating more on weakness, as other indicator still is overwhelmingly bullish. Initial hurdle is seen at RM20.17, followed by the RM20.37 level. A successful breach of the upper barrier of RM20.90 will probably lead to a re-test of the historical peak of RM21.38. Current support is lying at the RM19.50 mark.