KUALA LUMPUR (May 4): AllianceDBS Research said Mycron Steel Bhd (Mycron) had gapped up and that Mycron had on May 3 gapped up to reach the highest high of 45 sen since Sept 17, 2014 before closing near the day’s high at 44.5 sen (up 4.5 sen or 11.25%).
In its evening edition yesterday, the research house said Mycron continued to trade above the 20-day and 50-day moving average lines in the last 2 days.
“The upside gap indicated the urgency to establish stock position.
“Following the up close on May 3, the stock is likely to move higher again with immediate hurdle seen at 45 sen.
“A crossover of 45 sen should see further price rise to the next overhead resistance at 48.5 sen.
“The support is pegged at 40 sen. A fall below 40 sen would put pressure on the stock down to the subsequent support zone, 35 sen – 38.5 sen,” it said.
AllianceDBS Research said stock volume traded on May 3 was 5.93 million shares compared to the 3-month average volume of 350,000 shares.
The research house said that indicators wise, the MACD was marginally 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 overbought zone.
MYCRON (5087) - Mycron gapped up, says AllianceDBS Research
http://www.theedgemarkets.com/my/article/mycron-gapped-says-alliancedbs-research
