Immediate hurdle for Gadang at RM2.79, says AllianceDBS Research

KUALA LUMPUR (Nov 16): AllianceDBS Research said the immediate hurdle for Gadang Holdings Bhd (Gadang) was seen at RM2.79 and that Gadang had on Nov 15 filled the downside gap left behind on Nov 8.

It said the stock subsequently settled at the day’s high of RM2.77 (up 14 sen or 5.32%).

In its evening edition yesterday, the research house said Gadang continued to stay below the 20-day and 50-day moving average lines.

“Following the up close on Nov 15, the stock is likely to move higher again with immediate hurdle seen at RM2.79.

“A crossover of RM2.79 should see further price rise to the next overhead resistance at RM2.94.

“The support is pegged at RM2.64. A fall below RM2.64 would put pressure on the stock down to the subsequent support at RM2.50,” it said.

AllianceDBS Research said stock volume traded on Nov 15 was 10.5 million shares compared to the 3-month average volume of 3.99 million 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 a neutral zone. — theedgemarkets.com