RM2.12 support for Dayang at risk of being broken, says AllianceDBS Research

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KUALA LUMPUR (July 27): AllianceDBS Research said the RM2.12 support for Dayang Enterprise Holdings Bhd (Dayang) was at risk of being broken and said that Dayang had on July 24 tested previous day’s high of RM2.18 before settling at the day’s low of RM2.12 (down 5 sen or 2.30%).

In its evening edition last Friday, the research house said that Dayang continued stay below the 20-day and 50-day moving average lines.

“Following the weak down close on July 24, the stock is likely to test lower level with immediate support at RM2.12.

“A fall below RM2.12 would put pressure on the stock down to the subsequent support zone, RM1.80 – RM1.95.

“The hurdle is at RM2.25.A crossover of RM2.25 should see further price rise to the next overhead resistance zone, RM2.40 – RM2.45,” it said.

AllianceDBS Research said that stock volume traded on July 24 was 500,000 shares compared to the 3-month average volume of 230,000 shares.

The research house said that indicators wise, the MACD was still marginally above the 9-day moving average line with the buy signal remains intact.

It said the relative strength index indicated that the stock was currently in the neutral zone.