Support Line

Datasonic Group dropped to a near one-year low of RM1.12 on Jan 24 on extended correction before turning sideways in the wake of a fresh bout of bargain-hunting interest. Based on the daily chart, it appears this stock has corrected enough and going forward, prices are expected to firm in the near term. The improving moving average convergence/divergence histogram and the rising stochastic and the 14-day relative strength index from the oversold area added to investors’ optimism. Initial resistance is set at the RM1.19-RM1.22 range. A positive breakout of the next upper strong hurdle of RM1.35 will propel prices up to RM1.63 or the RM1.71 level. Current support is lying at RM1.07.

IW CITY advanced sharply the past week on renewed buying momentum, pushing the shares to as high as RM1.31 during intra-day session, the best since May 2015. A positive breakout was sighted on the chart yesterday, clearing the way for more scaling. However, trading volumes must expand accordingly to sustain the trend, going forward. Otherwise, the bulls may take the excuse of the growing overbought condition of the stochastic and the 14-day relative strength index to pause for air. A successful penetration of the RM1.35 barrier is likely to drive prices up to the RM1.50 level on bullish extended-mode. Initial support is resting at RM1.14, followed closely by the RM1.06-RM1.08 band.