Serba Dinamik

  • Support Line Premium
  • Wednesday, 06 Nov 2019

SERBA Dinamik Holdings Bhd jumped on strong buying interest on Tuesday, marking an end to the share's recent decline.

The stock showed signs of a rebound on Monday as it rose off the low of RM4.15 touched in the previous session.

By Tuesday, the rebound picked up speed and the share price gapped up above the 100-day simple moving aveerage (SMA) before climbing past all the key moving averages.

Trading volume on Tuesday spiked to a 13-month high, suggesting that investor interest has returned to the stock.

The 100-day SMA now serves as support at RM4.20 while lower support is pegged to the recent low of RM4.15 Tuesday's performance returned the stock to a short-term positive outlook although it fell short of a convincing breakout.

At the day's session high of RM4.39, the share price was challenging the resistance of RM4.40, which represents the recent high achieved on Oct 17.

There is potential for the stock to extend the advance past this hurdle towards the next resistance of RM4.56 as the technical indicators remains healthy and growing below overbought levels.

The slow-stochastic momentum index has crossed into a "buy" signal and remains at a middling level of 32 points. This suggests continued momentum growth as it continues towards the 50-point line.

The daily moving average convergence/divergence line has made a positive crossing with the signal line, which triggered a "buy" signal and marked the resumption of a positive sentiment.

The 14-day relative strength index has hit 66 points, but remains below the overbought line to suggest further growth on sustained buying.

The comments above do not represent a recommendation to buy or sell.

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