Support Line

BHS Industries fell to a 16-month low of 37.5 sen last Thursday before pausing in the wake of mild bargain-hunting interest. Though the grossly oversold condition of the stochsatic and the curving-up sign on the 14-day relative strengh index offer hopes of a relief recovery in the short term, the upside potential is likely to be capped, either at the 14-day simple moving average of 44.5 sen or at the 50-sen mark, simply because other indicators remain bearish. Stronger support is envisaged at the 30-sen mark.

HALEX Holdings rebounded sharply from the all-time lows of 32 sen on Sept 8 to achieve a high of 64.5 sen during intra-day session amid continuous bargain-hunting buying momentum. Technically, the firming stochastic momentum index and the upward expansion of the moving average convergence/divergence histogram against the signal line suggests more scaling in the pipeline. A clear penetration of the short-term descending line of 66 sen would signal a bullish reversal, en route to challenge the upper resistance of 82 sen while current support is resting at the 45-sen mark.