Eye on stock - Genting Malaysia

Eye on stock genting

Genting Malaysia Bhd (code: 4715) has found support at the 200-day simple moving average (SMA), which suggests it could embark on a positive retracement, offering investors an opportunity for short-term gains.

The long-term moving average has proved to be a reliable support, keeping the share price aloft over the course of the year so far.

After bouncing off the SMA, the share price was seen rising in yesterday’s trading although it remained below the previous session’s trading high.

Should the stock not be able to make a higher high in the subsequent sessions, it could idle in sideways trading as it awaits a fresh buying lead.

Investors should watch for a crossing of the RM2.80 level, which would signal further upside.

Following this breach, the share will look towards a higher target of RM2.90. A crossing above this latter resistance would see the stock resume a bullish trend.

The technical indicators are looking weak but have improved since the share price firmed over recent days.

The slow-stochastic momentum index is on the brink of crossing into neutral territory after falling into oversold conditions but remains just under at 19 points.

The 14-day relative strength index has bounced higher from below the oversold line and is currently pacing higher at 37 points.

Meanwhile, the daily moving average convergence/divergence line remains submerged in negative territory and is yet to close in on the signal line.

The stock’s current support levels are at its recent low of RM2.68. A negative breach of the support would also see a violation of the 200-day SMA, which would signal a bearish turn for the share.

Further support is seen at a May low of RM2.55.

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