Support Line

D & O shares bucked the frail market trend to reach an eight-month high of 32.5 sen during intra-day session amid follow-through bargain hunting interest. Based on the daily chart, a close above the bearish descending line of 33 sen would see the fate of this stock changing for the better, en route to challenge the pretty stiff resistance of 41.5 sen in the near-term. The immediate support is envisaged at the 28 sen, followed by the 20-sen mark.

MALAYAN Banking fell to a six-month low of RM8.66 during intra-day trading before bargain hunting nibbling helped trim losses. Apparently, indicators are weak, but the growing oversold condition of the stochastic and the 14-day relative strength index, combined with prices approaching the immediate support of RM8.60 level, offer a ray of hope of a relief rebound. If they fail to do so and drift lower, look for the RM8.38 line or the RM8.44 mark as the next support floor. To the upside, prices are expected to face strong resistance at RM9-RM9.25 band.