Support Line

KANGER International recovered to an 11-month high of 22 sen amid persistent bargain hunting interest. Apparently, indicators are bullish, but the growing overbought condition of the stochastic and 14-day relative strength index (RSI) suggests further advances are likely to attract profit-taking activity. Based on the daily chart, the prevailing mending process remains constructive as long as the rising 14-day and 21-day simple moving average lines resting on 15.5 sen and 14.5 sen continue to support prices. Heavy resistance is expected at the 26-sen barrier.

SEG International fell to a low of RM1.25 on Tuesday on extended correction mode before pausing in the wake of mild bargain hunting nibbling. Technically, prices are poised to stage a relief rebound in the immediate term, with the 14-day RSI curving up from the bottom and the stochastic screaming grossly oversold. However, the upside potential may be limited as the moving average convergence/divergence histogram is negative. A crack of the RM1.13 line will see the lower support floor of 98.5 sen while resistance is resting at the RM1.34 level, followed closely by the RM1.40 mark.