Mexter Technology Bhd (code:0075) is battling at a crucial support line in an attempt to regain its footing.
The stock has come under pressure since it ended a rally at a recent peak of 69 sen on Jan 10.
Over the course of about two months, it descended to a recent low of 42 sen this past Thursday where it breached the lowermost 200-day simple moving average, which had remained intact since July 2017.
Nevertheless, the breach was brief and shallow as the counter bounced back to a positive trajectory on Friday to a session high of 47 sen.
The stock faces many near-term obstacles and downward pressure continues in the form of falling SMA lines that currently sit in the 48-56 sen range.
In the immediate horizon, the 14-day SMA lies above at 48 sen, while a more crucial resistance comes in the form of the 21-day SMA that meets the short-term descending trend line at 50 sen. The uppermost 50-day SMA rests at the 56 sen mark.
At this early stage of development, the counter looks in danger of failing to break out of the downtrend, and resuming its decline. At Friday’s session low of 40 sen and closing price of 42 sen, a return above the 200-day SMA harbours hope that there will be some positive retracement in the immediate term.
A follow-up session of positive buying that takes the stock past the short-term trend line will add support to a positive outcome.
The technical indicators remain weak although the slow-stochastic momentum index has returned slightly from the oversold line but needs to grow stronger towards the 50-point mid-level.
The 14-day relative strength index, meanwhile, continued to show a weak trend in the oversold area.
The daily moving average convergence/divergence histogram remains in a negative state and is yet to cross the trigger line to suggest a change in trend trajectory.
Should this latest recovery lose steam, concrete support rests at 40.5 sen.
The comments above do not represent a recommendation to buy or sell.