Support Line

Dagang Nexchange recovered to a one-month high of 24.5 sen during intra-day session on bargain hunting interest. A close above the 25 sen barrier would signal a positive breakout, clearing the way for the bulls to challenge the upper heavy resistance at the 29 sen-30 sen area. Initial support is lying at the 22 sen line. An additional floor is pegged at the 21.5 sen level.

SHARES of Harbour-Link Group dropped to a seven-month low of RM1.10 in early trading before reversing to close a tick higher at RM1.14, saved by fresh buying momentum. Technically, the moving average convergence/divergence histogram remains in sell mode, but the uptick of the 14-day relative strength index from the bottom offers a ray of hope of more oversold rebound in the immediate term. A clear penetration of the 21-day simple moving average (SMA) of RM1.19 followed by a breach of the uppermost 100-day SMA of RM1.23 would lead to a re-test of the previous rally peak of RM1.38. On the opposite, a crack of the RM1.10 floor would signal the continuation of a correction process and in this case, the lower support of RM1-RM1.05 band would be vulnerable.