Gadang Holdings Bhd accelerated its rebound on Tuesday, having earlier bounced off the 64 sen mark to halt a decline and to assume a recovery position.
At Tuesday's session high of 72 sen, the share price has crossed above the short-term simple moving average (SMA) and on course for further gains.
A bearish outlook dominates the daily price chart following the stock sustaining losses over the July to September period.
Overhead, the 50-day and 200-day SMAs look en route to a negative crossing, which would see the formation of the dreaded "death cross". However, given the rapid increase in momentum on Tuesday, the stock may have embarked on a short-term rally to partially recover some of the losses.
However, there needs to be sustained buying interest over the coming sessions. Based on Tuesday's trading, there was no noticeable spike in volume relative to recent sessions.
At present, the share price looks determined to hit the overhead resistance of 74.5 sen, which would see it take out the 50-day SMA.
The slow-stochastic momentum index shows steep momentum growth with the percent K oscillator rising swiftly out of oversold territory to 65 points.
The 14-day relative strength index reflects the same sentiment, and has risen to 67 points.
The daily moving average convergence/divergence line has curved sharply above the signal line to suggest a return of bullish momentum. The index will look towards a crossing with the zero line to witness the start of a positive trend.
Support for the counter rests at the recent low of 64 sen. Should this level fail, the downtrend will continue to the next support at 55 sen.
The comments above do not represent a recommendation to buy or sell.