Since prices are so far above the 50-day moving average which is at 11.07 cents compared to the Sept 26 closing price of 19.1 cents, prices could ease to 18 cents initially, which if breached could see the stock ease towards 16 cents.
On Sept 26, one of the top gainers both in percentage and absolute price was IHH Healthcare. This stock has just broken out of an ascending right triangle, just as its 50- and 100-day moving averages have made a positive cross at RM6.9. Its 200-day moving average is at a slither below RM7. These are important supports.
IHH’s chart pattern shows that the stock has broken above a thrice-tested resistance at RM7.20 on its fourth attempt, indicating an upside of RM8. What could cause this rally? Perhaps the RM is strengthening against the SGD, which helps IHH.
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The STI spent the week of Sept 22-26 consolidating because the banks, REITs and developers had reacted to the Federal Reserve’s Federal funds rate cut ahead of the announcement.
The still-rising 50-day moving average is at 4,261, and the STI ended at 4,265 on Sept 26. The index has dipped below the breakout level of 4,280, a slightly negative move. The STI should halt its decline about now to contain a deteriorating chart pattern.
