KUALA LUMPUR (Jan 18): AllianceDBS Research said Mudajaya Group Bhd (Mudajya) had gapped down to reach a low of 85 sen before closing at 86.5 sen (down 2.5 sen or 2.80%).
In its evening edition yesterday, the research house said Mudajya fell below the 20-day and 50-day moving average lines on Jan 17 after spending 17 market days above the same 2 MA lines.
“The downside gap indicated the urgency to unload stock position.
“Following the down close on Jan 17, the stock is likely to move lower again with immediate support at 83 sen.
“A fall below 83 sen should see further decline to the subsequent support at 77 sen.
“The hurdle is pegged at 92 sen. A crossover of 92 sen should see further price rise to the next overhead resistance zone, 94.5 sen – 97 sen,” it said.
AllianceDBS Research said stock volume traded on Jan 17 was 410,000 shares compared to the 3-month average volume of 370,000 shares.
The research house said that indicators wise, the MACD was below the 9-day moving average line with the sell signal remains intact.
It said the relative strength index indicated that the stock was currently in an oversold zone. — theedgemarkets.com